Stock market today: Dow, S&P 500, Nasdaq slide out gains as Nvidia, tech stocks lead sharp reversal lower

US equities staged an abrupt midday reversal Thursday, with the Nasdaq falling more than 2.1% (a greater than 3.5% intraday swing), the S&P 500 down 1.5% and the Dow off 380 points (0.8%), after an initial post‑earnings lift. Nvidia surged early on an earnings beat and stronger-than-expected Q4 revenue outlook — CEO Jensen Huang said Blackwell demand is “off the charts” — but still finished down 3.1%, while the September nonfarm payrolls print came in at 119,000 (vs. 51,000 expected) and the unemployment rate rose to 4.4%, shifting options markets to roughly 38% odds of a December Fed cut amid Fed minutes showing policymakers divided. Crypto weakness (bitcoin trading below $87,000) amplified the selloff even as Walmart rallied nearly 7% after beating Q3 results and raising its full‑year outlook, signaling consumer resilience. The mix of stronger jobs data, mixed corporate reports, divided Fed signals and volatile tech/crypto flows points to heightened near‑term market uncertainty for rate‑sensitive and AI‑exposed positions.

Analysis

US equities experienced an abrupt midday reversal: the Nasdaq Composite fell more than 2.1% from Wednesday’s close after a greater-than-3.5% intraday swing, the S&P 500 declined 1.5%, and the Dow lost 380 points (0.8%) as markets turned lower following Nvidia’s earnings, the September jobs report, and a sharp selloff in crypto (bitcoin trading below $87,000, near its lowest since April). Nvidia delivered an earnings beat and a stronger-than-expected Q4 revenue outlook with CEO Jensen Huang saying Blackwell demand is "off the charts," yet NVDA finished down 3.1% after an early intraday gain of as much as 5%, indicating profit-taking and sensitivity to broader risk-off flows. Walmart beat Q3 expectations and raised its full-year guidance, lifting shares nearly 7% and signaling consumer resilience into the holiday season relative to the mixed tech/crypto picture. September nonfarm payrolls surprised to the upside at +119,000 (vs. 51,000 expected) while the unemployment rate rose to 4.4% from 4.3%; options markets priced roughly 38% odds of a December Fed cut and Fed minutes showed policymakers with "strongly differing views," heightening near-term policy uncertainty and expected volatility for rate-sensitive and AI-exposed positions.

Key Decisions for Investors

• Reduce or hedge short-term exposure to high-beta AI and technology positions (including NVDA) following the intraday reversal despite strong fundamentals, consider options collars or trimming size to lock gains
• Increase or maintain allocation to defensive, consumer-resilient names demonstrated by Walmart’s beat and raised outlook as a hedge against broader market volatility heading into the holiday season
• Monitor upcoming labor-market prints and Fed communications closely and keep duration and rate sensitivity under active management given the 38% implied odds of a December cut and divided Fed views
• Manage crypto-correlated risk by setting explicit stop-losses or using volatility hedges if bitcoin remains under pressure near $87,000, since crypto weakness amplified the market’s risk-off move