S&P 500 heads toward worst losing streak in months as stocks slump

Market Overview - U.S. stocks experienced a decline, with the S&P 500 falling as much as 0.6% in early trading, marking a potential fourth consecutive day of losses, the longest since August [1] - Concerns are rising regarding overinflated valuations of AI and tech companies, particularly ahead of Nvidia's earnings report [1][2] Company-Specific Insights - Nvidia, valued at approximately $4.6 trillion, is seen as a bellwether for the AI ecosystem, with significant market expectations surrounding its upcoming earnings report [2] - The shares of Nvidia were down about 2.5% in early trading, indicating market apprehension [3] Expert Opinions - Daniel Pinto, vice president of JPMorgan, warned of a potential correction in AI stocks, suggesting that it could lead to broader declines in the S&P and the industry [4] - Investment director Russ Mould emphasized the critical nature of Nvidia's earnings results, stating that even a mild disappointment could trigger a wider market sell-off [3] Economic Context - The market is experiencing jitters ahead of delayed U.S. economic data releases, including September's jobs numbers, which could influence the Federal Reserve's decision on interest rates [5] - Recent comments from Federal Reserve officials have created uncertainty regarding a potential rate cut in December, with the probability of such a cut dropping to 47% [6]