CNBC Daily Open: Investors suffer from whiplash as AI stocks gyrate

Market Overview - U.S. stocks experienced significant volatility, with sharp mood swings observed on Thursday [1] - The Nasdaq Composite fell by 2.16% after an intraday high of 2.6%, while the S&P 500 and Dow Jones Industrial Average also saw declines of 1.56% and 0.84% respectively after earlier gains [2] Company Performance - Nvidia's stock was particularly volatile, rising by 5% before closing down 3.2%, indicating investor concerns despite initial reassurances from CEO Jensen Huang regarding the AI bubble narrative [3] - Other AI-related stocks, such as Oracle and AMD, exhibited similar trading patterns, reflecting a broader market sentiment [3] Economic Indicators - The U.S. jobs report for September was better than expected, contributing to market strain and dampening expectations for an interest rate cut by the Federal Reserve [4] - Traders are now adjusting their expectations, with increased bets that the Federal Reserve will maintain interest rates in December [4] Investor Sentiment - Investors are facing stretched valuations and a reduced likelihood of interest rate cuts, leading to a more cautious outlook for the upcoming holiday season [5]