Wall Street closed sharply lower on Thursday, dragged down by steep losses in Nvidia, Tesla, and other artificial-intelligence heavyweights, as investors dialed back expectations for further Federal Reserve interest-rate cuts amid renewed inflation concerns and mixed signals from policymakers.
The market downturn came just as the U.S. government reopened after a record 43-day shutdown, which had rattled investors and delayed key economic reports. Recent remarks from Fed officials have fueled uncertainty, with several signaling hesitation about easing policy further this year.
Traders now see only a 47 % chance of a 25-basis-point rate cut in December, down from about 70 % last week, according to CME Group’s FedWatch Tool.
“The fundamental question is whether tariff-driven inflation is temporary or not,” said Jake Dollarhide, CEO of Longbow Asset Management in Tulsa. “That’s why some Fed governors are reluctant to cut—it’s a risky bet either way.”
AI Sector Leads Market Sell-Off
Technology stocks bore the brunt of Thursday’s sell-off as investors questioned lofty valuations built on AI optimism.
Nvidia (NVDA.O) sank 4.7 %
Tesla (TSLA.O) dropped 7.6 %
Broadcom (AVGO.O) slid 5.4 %
“There’s a lot of uncertainty about the economy. What we’re seeing is a correction in the AI sector and rotation to other parts of the market,” said Peter Cardillo, chief market economist at Spartan Capital Securities.
The S&P 500 fell 1.62 % to 6,739.60, the Nasdaq tumbled 2.48 % to 22,825.50, and the Dow Jones Industrial Average lost 1.38 %, closing at 47,590.87.
Eight of the 11 S&P 500 sector indexes declined, led by a 2.74 % drop in information technology and a 2.58 % loss in consumer discretionary stocks.
Rotation Out of Tech
The week had earlier seen the Dow notch record highs on Tuesday and Wednesday as investors shifted money from technology into health care and value stocks.
The S&P 500 Value Index rose 1.4 % for the week, while the Growth Index slipped 0.7 %—a sign of investors’ growing caution around high-priced AI names.
Cisco Systems (CSCO.O) bucked the trend, climbing 5 % after raising full-year profit and revenue forecasts on strong demand for networking gear.
In contrast, Walt Disney (DIS.N) plunged 7.7 % after warning of a prolonged dispute with YouTube TV over distribution of its cable channels.
Labor and Commodities
Fresh labor data from ADP showed private employers shedding roughly 11,000 jobs per week through late October. A report from Indeed Hiring Lab pointed to a 16 % year-on-year decline in retail job postings, underscoring ongoing weakness in hiring.
Energy producer APA Corp gained 3.2 % after reports that Spain’s Repsol was considering a reverse merger of its upstream unit with potential partners.
Meanwhile, memory-chip makers Western Digital and SanDisk fell 3.1 % and 10.7 %, respectively, following weak sales and profit figures from Japan’s Kioxia Holdings.
Market Breadth
Declining stocks outnumbered advancers on the S&P 500 by roughly 1.8 to 1. The index posted 15 new highs and 6 new lows, while the Nasdaq recorded 51 new highs and 178 new lows.
With inflation pressures persisting and rate-cut expectations fading, analysts say investors are bracing for more volatility as the year winds down.
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Here's your AnewZ Daily Brief for 28 September 2026. These are the top stories making headlines in technology.
Saudi Foreign Minister Prince Faisal bin Farhan has arrived in Washington for talks with U.S. Secretary of State Marco Rubio on bilateral ties and key regional and international developments, Saudi state news agency SPA reported.
The European Union's decision to simultaneously advance accession talks with Ukraine, Moldova, Montenegro and Albania marks its most ambitious enlargement effort in more than two decades.
U.S. President Donald Trump has denied reports that he offered Iran sanctions relief and access to frozen funds in exchange for nuclear concessions.
In the marshlands of Malluba in southern Azerbaijan, Kamil Mammadov follows a routine that has been passed down through generations. His family has worked with medicinal leeches for centuries, harvesting and breeding a species known as Hirudo orientalis, or the Caucasian medicinal leech.
Baku is hosting the second Azerbaijan International Investment Forum (AIIF 2026) and it’s attracting more interest this year, Azerbaijan’s Deputy Prime Minister told AnewZ. “The agenda is very impressive. More guests, more interest,” he said.
Warren Buffett has stepped down as chairman of Berkshire Hathaway, marking the end of one of the most influential leadership tenures in corporate history and completing a succession process that has been years in the making.
Nigerian billionaire Aliko Dangote launched Africa's biggest-ever share sale on Monday, opening the oil refinery that has remade the country's fuel market to public ownership for the first time.
Volkswagen’s supervisory board has approved a major overhaul aimed at cutting 100,000 jobs by 2030 as the German carmaker battles weaker sales, falling profits and intensifying global competition.
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