The Dow Jones Industrial Average plummeted on Monday, closing down over 550 points with renewed pressure on the big names in technology taking its toll on Wall Street. First, investors started the closely anticipated week tentatively as Nvidia will release its earnings and new U.S. labor market statistics.
Tech Weakness Accelerates as Nvidia’s Earnings Loom Large
Much of Monday’s anxiety centered on Nvidia, the undisputed bellwether of the AI trade. Shares of the chipmaker slid nearly 2% ahead of its third-quarter results, which are scheduled to be released Wednesday after the bell.
Nvidia’s performance has become a proxy for broader market confidence in the multitrillion-dollar AI boom, and analysts say the company now faces the increasingly difficult task of beating already towering expectations.
Market observers noted that the stock’s rally over the past two years has been so powerful that even a minor slowdown in revenue or a cautious outlook could unsettle investors who have priced in near-perfect execution.
Any sign that hyperscalers, including Alphabet, Amazon, Meta, and Microsoft, are moderating their AI spending could also send shockwaves through the industry.
It was not only Nvidia that was under pressure. The stock of other tech giants, such as Apple, Salesforce, and Meta, dropped concurrently, which further fueled the belief that the industry’s long-term performance may need a correction. The S&P 500 lost 0.92 percent to 6,672.41, the Nasdaq Composite lost 0.84 percent to 22,708.07, and the Dow fell 1.18 percent to 46,590.24.
Analysts said the decline was amplified by the fact that many institutional investors have substantial exposure to megacap tech, which now represents an outsized share of the S&P 500. With valuations near historic highs, even a slight shift in sentiment can prompt rapid, broad-based selling.
Investors Turn Attention to Consumer Health as Walmart Prepares to Report Earnings
Investors are also focusing on consumer spending beyond Big Tech as the holiday season gets underway. Walmart has earnings to report on Thursday, and analysts have said it could be a significant sign of economic strength going into the last weeks of the year.
A number of retailers have already cautioned that more households, which are sensitive to inflation, are becoming picky. An increase in the cost of borrowing, payment of student loans, and a seldom-balanced growth in wages have compelled most consumers to reduce discretionary spending. The advice that Walmart provides, especially on holiday trends, can tell whether the consumers are focusing on necessities or are finding the time to spend more diversely.
New labor data will also be released in conjunction with the retail outlook, which will be announced on Thursday. The federal shutdown postponed the release of the September nonfarm payrolls report, which will provide a new perspective on the job creation, unemployment, and wage growth.
These numbers matter even more because the Federal Reserve has said future rate decisions will depend on how inflation balances with the strength of the job market.
Meanwhile, the release of the Fed’s October meeting minutes later in the week will give investors more clarity on how policymakers are evaluating the path ahead. Rate-cut expectations have cooled in recent weeks, with Fed funds futures now reflecting roughly a 45% probability of a December cut — a steep drop from nearly 90% earlier in the month. Some economists warn that sticky inflation, combined with the Fed’s caution, could complicate the market narrative heading into 2026.
Alphabet Shines as Berkshire Hathaway Reveals a Large New Stake
Amid the broader market weakness, Alphabet emerged as a standout performer. The stock jumped over 3 percent following the announcement of a new stake valued at about 4.3 billion by Berkshire Hathaway. The move instantly caused a discussion throughout Wall Street regarding whether the acquisition was a strategic long-term investment in AI or merely an opportunistic charge following the volatility of last month.
The company has recovered from initial setbacks in its AI implementation and is quickly releasing new models and incorporating generative AI technology into its massive product portfolio.
Investors further pointed out that Alphabet is one of the few mega-cap technology companies with a strong balance sheet and high free-cash-flow profile capable of financing multi-year AI spend internally. That stability is contrasted with other companies, such as Oracle, which has come under scrutiny regarding its increased debt as it tries to compete more actively in cloud and AI infrastructure.
Bitcoin, in the meantime, took a break. The cryptocurrency dropped by over 2% to fall beneath the $95,000 mark and towards diminishing interest in risky speculative purchases. Analysts attributed the fall to the generally risk-off mood in the markets and losses in momentum following the sharp multi-month advance.
A Fragile Rally Shows Cracks as November Declines Continue
The recent recession is a continuation of a series of losses by the key indexes in November. The S&P 500 has declined over 2.5% this month, and the Nasdaq has fallen over 5% since the last high. The S&P tech industry, which had been giving disproportionately high returns most of 2025, is down nearly 7% from its highs.
Nevertheless, not every strategist is concerned. Some people say a small pullback is normal and healthy since high returns focus on just a few stocks. Others indicate high corporate profits, sustained consumer spending, and past seasonal trends as factors that might make the market still have a year-end rally.
A lot will be determined by the report of Nvidia and the macro data, which is likely to be released this week. A robust showing from the chipmaker, combined with stable labor figures and upbeat retail guidance, could quickly restore confidence. But a disappointing performance — or even a “good but not great” one — could reinforce fears that the AI trade is losing steam.
For now, Wall Street is preparing for a volatile, closely watched week that may redefine the tone of the market heading into December.