US Stocks Plunge Amid AI Boom Concerns and Bond Market Volatility
The US stock market remained subdued on Monday as investors looked ahead to a week filled with key events that could significantly impact markets. The S&P 500 fell 0.3%, moving further away from its record high reached earlier this month.
Nvidia, one of the biggest beneficiaries of the AI boom, has become Wall Street's largest and most influential stock. The chipmaker is scheduled to report its latest quarterly earnings on Wednesday, which could set the direction for the next major move in AI-related shares. However, investors have been concerned that enthusiasm surrounding artificial intelligence has pushed valuations too high.
The bond market has also been a significant influence on stocks in recent weeks. Longer-term Treasury yields rose through the summer as investors worried about elevated inflation, government debt burden, and other factors. The US Treasury Department's surprise announcement last week to increase the size of planned Treasury buybacks may help limit the rise in yields on 10-year and 30-year Treasurys.