U.S. stocks follow Asia, Europe down on fear that Nvidia, other superstars are overvalued

Market Overview - The U.S. stock market experienced a decline, with the S&P 500 falling by 0.8%, the Dow Jones Industrial Average dropping by 498 points (1.1%), and the Nasdaq composite decreasing by 1.2% [1][11] - Nvidia was a significant contributor to the market's decline, with its stock price dropping by 2.8%, resulting in a month-to-date loss exceeding 10%, which is classified as a correction [2][4] Nvidia's Impact - Nvidia's substantial market capitalization makes it a key influencer on Wall Street, often affecting the S&P 500's direction [3] - The company's stock price has more than doubled in four of the last five years, indicating its rapid growth and the potential for volatility [5] Investor Sentiment - A recent survey by Bank of America Global Research revealed that 45% of global fund managers identified an AI bubble as the top risk for the market, surpassing concerns about the bond market, inflation, and trade wars [6] - Investors are increasingly concerned about overinvestment in AI technologies, with fears that the anticipated returns may not materialize as expected [7] Other Market Influences - Bitcoin's price fluctuated, briefly falling below $90,000 before recovering to around $93,000, reflecting volatility in the cryptocurrency market [8] - Home Depot's stock fell by 6% after reporting weaker-than-expected summer profits, attributing the decline to a lack of storms and consumer uncertainty in the housing market [9] Upcoming Earnings Reports - Nvidia's upcoming profit report is critical, as it could either stabilize its stock price or exacerbate its decline [10]