US stocks slide as Wall Street's AI jitters persist

Nvidia's recent financial results led to an initial surge in stock prices, but this was followed by a significant decline in the stock market. Despite strong earnings, concerns about a potential bubble in the artificial intelligence sector and the Federal Reserve's interest rate policies have contributed to market volatility.

Intrinsic, a subsidiary of Alphabet, has partnered with Foxconn, a supplier for Nvidia, to implement AI robots in Foxconn's factories in the U.S. This collaboration highlights the growing focus on 'physical AI', which refers to artificial intelligence that operates in real-world environments.

Despite Nvidia's strong earnings report, which exceeded expectations and alleviated concerns about a slowdown in the AI sector, stock markets remain volatile. The initial positive impact on U.S. stock futures and international equities has been overshadowed by renewed fears of an AI bubble, leading to fluctuations in market sentiment.

Asian stocks fell sharply following losses on Wall Street, where a brief rally led by Nvidia Corp. quickly dissipated. Investors are retreating from riskier assets, including cryptocurrencies, amid growing concerns about market volatility.

After a week of market uneasiness, Nvidia's profit surge and Walmart's earnings initially provided relief to investors. However, by Thursday afternoon, this bullish sentiment faded as concerns about a potential AI bubble resurfaced. Jensen Huang, Nvidia's CEO, had previously eased worries about overinvestment in AI following the company's earnings report.

US stocks ended lower as concerns over valuations and uncertainty regarding Federal Reserve policies weighed on investor sentiment. Treasury yields also declined, reflecting a cautious market environment. The downturn signals growing apprehension among investors about economic stability and potential interest rate adjustments.

Ross Stores has raised its full-year guidance following a 7% increase in same-store sales, surpassing Wall Street's expectations of 3.9% growth. This positive trend reflects the retailer's strong market performance and consumer demand for discount goods.

Leading US stock markets experienced a decline shortly after a brief rally sparked by Nvidia's strong earnings report. The initial optimism faded as concerns about a potential bubble in the artificial intelligence sector resurfaced, putting pressure on technology stocks central to the AI boom.