An early swoon shook the U.S. stock market on Friday, with Nvidia, bitcoin, and gold among the high flyers affected. The market quickly calmed after an initial drop, with the S&P 500 erasing losses and the Nasdaq and Dow Jones Industrial Average fluctuating throughout the day.

AI stocks, including Nvidia, were at the center of Friday’s market action, leading to significant swings. Critics warn that high stock prices, particularly in AI-related companies, could lead to a market drop due to overvaluation.

Despite recent market volatility, the S&P 500 remains close to its record high set last month. Analysts emphasize the importance of companies delivering solid growth in profits to justify high stock prices.

Traders are closely watching Nvidia’s upcoming profit report, as a disappointing result could lead to further market drops. Interest rates play a crucial role in market dynamics, with lower rates potentially boosting stock prices.

Federal Reserve officials are assessing the impact of interest rate cuts on inflation and economic growth. Questions are rising about a potential third rate cut after the next Fed meeting in December.

In the bond market, the 10-year Treasury yield rose slightly, while Bitcoin fell below $95,000 and gold prices sank 2.4%. Stock markets globally experienced declines, with South Korea’s Kospi index reporting a significant loss.

In London, the FTSE 100 sank amid speculation about the U.K. government’s tax plans. Overall, market uncertainty persists as investors navigate changing interest rates and economic indicators.

Read more at Yahoo Finance: Wall Street scrambles back from a big morning loss as Nvidia and bitcoin swing