AI stocks, which were bracing for another difficult session, pared losses in premarket trading after Williams’ remarks. Nvidia was last little changed, while AMD turned positive.
This follows Thursday’s volatile trade where Nvidia swung from a 5% intraday gain to a 3% loss, extending its monthly decline to more than 10%. Investors had initially cheered Nvidia’s strong fiscal third-quarter results before the latest labor data tempered rate-cut expectations and triggered broad selling.
How Broad Was Thursday’s Market Decline?
Breadth data showed intense selling pressure across U.S. exchanges. On the NYSE, declining issues represented nearly 76% of all stocks traded, and almost 81% of total share volume moved lower. New 52-week lows outnumbered highs 174 to 50.
Nasdaq reflected similar stress, with more than 73% of listed names falling and declining volume accounting for nearly 82% of the total. New lows surged to 513 versus 125 new highs, underscoring how widespread the retreat was.
Are Investors Overreacting to Recent Weakness?
Some strategists argue the pullback reflects normal profit-taking rather than the start of a deeper downturn. The S&P 500 is down 2.9% for the week, the Dow nearly 3%, and the Nasdaq 3.6%, as investors trimmed exposure to several high-performing stocks.
Carson Group’s Ryan Detrick noted that earlier in the month conditions had become “frothy,” and the recent stretch of selling may help reset sentiment and shake out weaker positions.
