Wall Street drops as Nvidia rally fades and US jobs data fuels volatility

Market Overview - Wall Street experienced a significant decline after an early rally, with the Nasdaq and S&P 500 closing at their lowest levels since early September [1][2] - The Cboe Volatility index reached its highest close since April 24, indicating increased market fear [1] Nvidia and Technology Sector - Nvidia's shares fell by 3.2% after an earlier increase of 5%, contributing to a broader decline in semiconductor stocks, which dropped by 4.8% [2][5] - Despite Nvidia's strong earnings report, concerns about high technology valuations and AI spending persist, leading to a notable drop in the Nasdaq from its October high [3][4] Labor Market and Economic Data - The U.S. unemployment rate rose in September, despite job additions exceeding economists' expectations, creating uncertainty regarding potential interest rate cuts by the Federal Reserve [3][6] - The upcoming labor report is significant as it will be the last before the Fed's December meeting, with the Bureau of Labor Statistics combining October and November's payroll data [6] Consumer Staples and Other Sectors - The consumer staples sector was the only gainer in the S&P 500, increasing by 1.1%, while the technology sector saw a decline of 2.7% [5] - Walmart's stock rose by 6.5% after the retailer raised its annual forecast for the second time this year [7] Market Dynamics - There was a notable disparity in market performance, with declining issues outnumbering advancers by a significant margin on both the NYSE and Nasdaq [8] - Trading volume on U.S. exchanges was higher than the average for the past 20 trading days, indicating increased market activity [8]