After Nvidia’s strong Q3 report, investors expected a positive market day, but the bullish trend quickly reversed. Nvidia stock and major indexes ended in the red, with Nvidia shares down 3.2%. Concerns about the Fed’s interest rate decision and fears of an AI bubble likely spooked the market on Thursday.

Nvidia stock opened higher on Thursday, up 5.1%, but ended down 3.2%. The S&P 500 and Nasdaq closed lower by about 1.6% and 2.2%, respectively. Investors were spooked by concerns over the Fed’s interest rate decision and fears of an AI bubble, despite Nvidia’s strong Q3 report.

The market’s early rally on Thursday turned into a rout, with Nvidia stock and major indexes ending in the red. Concerns over the Fed’s interest rate decision and fears of an AI bubble likely contributed to the market’s downturn. Nvidia shares opened higher but closed down 3.2% on Thursday.

Investors in Nvidia stock and AI stocks were likely optimistic after Nvidia’s stellar Q3 report. However, the market quickly turned bearish on Thursday, with Nvidia stock and major indexes ending lower. Concerns over the Fed’s interest rate decision and fears of an AI bubble spooked investors.

Read more at Nasdaq: Why Thursday’s Nvidia Earnings-Led Stock Market Early Rally Turned Into a Rout