Wall Street's AI Lottery Ticket Just Lost Its Magic

Here’s the plot twist nobody saw coming: Nvidia crushed earnings, beat guidance, and the stock still tanked. Classic market move—buy the rumor, sell the news on steroids.

The real culprit? The jobs report killed the Fed rate-cut dream. September saw unemployment uptick but job growth came in hotter than expected, which basically screams “no more cuts coming.” The Fed Cut Probability Tool dropped from 98.8% a month ago to just 39.8% today. That’s a gut punch.

The damage across markets:

• S&P 500: -1.56% (6,538.76)
• NASDAQ: -2.15% (22,078.05) — crushed
• Dow: -0.84% (45,752.26)

Wall Street’s early gains evaporated like morning dew. The broader selloff reflected cold reality: rates staying higher for longer.

Asia catching the fallout — China’s Shanghai Composite slipped 0.40% to 3,931, while Shenzhen dropped 0.76%. Property stocks tried to prop things up, but financials and resources were underwater. Bank of China jumped 4% (outlier), while energy stocks got hammered—Yankuang Energy cratered 2.47%, China Shenhua Energy sank 1.22%.

Oil says what we’re all thinking: WTI crude for December delivery slid 0.44% to $59.18. Even geopolitical chatter about Russia-Ukraine peace talks couldn’t keep energy elevated.

The vibe check: Mixed data = confused markets. Rate cuts aren’t coming as fast as everyone prayed for, and corporate earnings can’t bail out the macro picture. Buckle up—this is the kind of regime where every data point matters.