Dow tanks 600 points, S&P 500 suffers brutal fourth straight drop - why stock markets are down today?

Market Overview - U.S. stocks experienced a significant decline, with the Dow Jones Industrial Average dropping 584 points, or 1.3%, and the S&P 500 falling 1.1%, marking its fourth consecutive losing day, the longest streak since August [1][9] - The Nasdaq Composite, heavily weighted with technology companies, fell 1.7%, influenced by profit-taking and high AI stock valuations [1][9] Technology Sector - Nvidia, the AI chip leader, fell 2%, continuing a monthly decline of 10% ahead of its third-quarter earnings report due Wednesday [1][11] - Major tech companies like Amazon and Microsoft also saw losses despite announcing a significant AI partnership with AI startup Anthropic, which plans to spend $30 billion in collaboration with Microsoft [1][12] - Alphabet CEO Sundar Pichai expressed concerns about the AI boom being "irrational," warning that no company would be immune if the bubble bursts [2][12] Cryptocurrency Market - Bitcoin briefly dipped below $90,000, down from an early October record of $126,000, raising concerns about broader market risks as many tech investors hold cryptocurrency alongside equities [3][13] - At press time, Bitcoin was trading just above $91,000, indicating a retreat in risk appetite across markets [3][13] Retail Sector - Home Depot shares fell after the company reported an earnings miss and cut its full-year outlook, contributing to broader market pressure [4][14] - Weak retail data and cautious consumer spending are impacting market sentiment, with the Nasdaq on track to end a seven-month win streak and the S&P 500 down 2.5% in November following a six-month rally [4][14] Federal Reserve and Economic Outlook - Investor anxiety is rising over the Federal Reserve's next moves, with Fed funds futures indicating a roughly 50% chance of a rate cut in December, down from over 90% a month ago [6][15] - Key economic releases, including the Fed's October meeting minutes and September nonfarm payrolls, are scheduled for release, which traders are closely monitoring for signs that could affect interest rates and equity valuations [6][15] Market Sentiment - Analysts note a sharp shift in market sentiment from rewarding AI investments to skepticism about future returns, as the market undergoes a "sharp de-risking" phase [7][10][16] - Concerns over Big Tech debt issuance and the sustainability of AI growth have added to the market's unease [10][12]