Stock Market Today

The stock market experienced a downward trend today with the Dow Jones, S&P 500, and Nasdaq all falling as AI stocks led the decline. Tech stocks, particularly those related to artificial intelligence, faced scrutiny from investors concerned about valuations and job market data.

Market Performance

The S&P 500 traded down by 1.12% to settle at 6,720.32, while the Nasdaq Composite tumbled 1.9% to end at 23,053.99. The Nasdaq 100 was down more than 2% since last Friday’s close, marking its worst week since early April.

Reasons for Decline

Investors questioned the valuations of AI companies, leading to a sell-off in tech stocks. Companies like Nvidia, Amazon, and Tesla faced significant drops as concerns over AI hype and frothy valuations intensified.

Job Market Data

Private job data showing weakness in employment numbers also contributed to the market’s negative sentiment. Layoff numbers reached a high not seen since 2003, adding to investors’ worries about the overall economic outlook.

Conclusion

Despite some mixed performances, the overall sentiment in the stock market today was bearish, with AI stocks leading the decline. Investors will be closely watching how the market reacts in the coming days as they assess the impact of valuation concerns and job market data on future market movements.