Tech sector valuation and leverage concerns, along with anticipation for Nvidia’s earnings, fueled Wall Street’s highest volatility in a month. US equity indexes ended nearly 1% lower, with the VIX fear index hitting a mid-October high. Tech-heavy markets globally saw sharp declines, with Tokyo and Seoul experiencing 3% losses.

Worries about leverage in the tech sector were heightened by Amazon’s $15 billion debt offering and Peter Thiel’s hedge fund selling its entire stake in Nvidia. Demand for credit default swaps on tech companies to hedge AI-related equity exposure is growing.

Private credit concerns arose as Blue Owl’s stock fell 3% after blocking fund redemptions before a merger. Tech sector unease spilled into crypto markets, with bitcoin dropping below $90,000 for the first time since April. Alphabet was a rare gainer, with Dell and Hewlett Packard facing 7-8% stock price declines.

Alphabet CEO Sundar Pichai warned of potential fallout if the AI boom collapses, acknowledging “irrationality” in the tech breakthrough. The European Commission launched market investigations into Amazon and Microsoft’s cloud computing services. Big US retailers Home Depot and Walmart are set to report earnings.

Federal Reserve rate cut hopes diminished as Treasury yields decreased amid equity volatility. The New York Fed’s business survey showed strong November conditions. UK gilts wobbled amid unclear budget signals and potential Labour Party leadership challenges. Saudi Crown Prince Mohammed bin Salman meets with President Donald Trump for business deals.

Read more at Yahoo Finance: Morning Bid: Rattled tech stokes volatility