Dow's 700-point gain wiped out in rollercoaster trading day as Nvidia rally fizzles

Market Overview - Wall Street stocks experienced a significant decline after an initial rally, with the Dow Jones Industrial Average dropping 386 points, or 0.8%, to 45,752, despite having risen over 700 points earlier in the session [1][5] - The S&P 500 fell by 1.6%, and the Nasdaq decreased nearly 500 points, or 2.2% [1] Technology Sector - Nvidia's stock closed down 3% after an earlier surge of 5%, and the Philadelphia SE Semiconductor index fell by 3.4% [2] - Concerns over high technology valuations and steep artificial intelligence spending have led to a decline in the Nasdaq, which is now significantly below its October high [3][9] - Nvidia's CEO, Jensen Huang, dismissed AI concerns during an analyst call, indicating a positive outlook for the company [6][8] Labor Market Data - Recent data revealed that the unemployment rate increased in September, despite employers adding more jobs than anticipated, which has muddied the labor market outlook [3] - This labor market data has led traders to perceive a growing likelihood of a Federal Reserve interest rate cut in December [3] Investor Sentiment - Jed Ellerbroek, a portfolio manager, noted the difficulty in identifying the cause of the market's reversal, despite Nvidia's strong earnings dispelling some fears regarding AI investments [4] - The market has been in a defensive trading mode for the past two weeks, suggesting a continuation of cautious sentiment among investors [6] Company Performance - Walmart's stock advanced after the retailer raised its annual forecast for the second time this year and announced plans to change its stock listing to the Nasdaq from the NYSE [8]