Wall Street drops to one of its worst days since April on worries about
AI stocks and interest rates
[November 14, 2025] By
STAN CHOE
NEW YORK (AP) — The U.S. stock market tumbled Thursday to one of its
worst days since its springtime sell-off, as Nvidia and other AI
superstar stocks kept dropping on worries their prices shot too high.
Also hurting the market were questions about whether coming cuts to
interest rates that Wall Street has been banking on will actually
happen.
The S&P 500 sank 1.7% and pulled further from its all-time high set late
last month. It was the worst day in a month for the index at the heart
of many 401(k) accounts and the second-worst since April’s plunge after
President Donald Trump shocked the world with his “Liberation Day”
tariffs.
The Dow Jones Industrial Average dropped 797 points, or 1.7%, from its
record set the day before, while the Nasdaq composite lost 2.3%.
Nvidia was the heaviest weight on the market after the chip company fell
3.6%. Other stocks swept up in the artificial-intelligence frenzy also
struggled, including drops of 7.4% for Super Micro Computer, 6.5% for
Palantir Technologies and 4.3% for Broadcom.
Questions have been rising about how much higher AI darlings can go
following their already spectacular gains. At the start of this month,
Palantir was sporting a stunning rise of nearly 174% for the year so
far, for example.
Such sensational performances have been one of the top reasons the U.S.
market has hit records despite a slowing job market and high inflation.
AI stock prices have shot so high, though, that they’re drawing
comparisons to the 2000 dot-com bubble, which ultimately burst and
dragged the S&P 500 down by nearly half.
In the meantime, stocks outside of AI also fell across Wall Street as
traders worried that the Federal Reserve may not deliver another cut to
interest rates in December, as many had been expecting.
Wall Street loves lower interest rates because they can goose the
economy and prices for investments, even though they can also worsen
inflation. A halt in cuts could undercut U.S. stock prices after they
already ran to records in part on expectations for more reductions.
Expectations have come down sharply in recent days that the Fed will cut
its main interest rate for a third time this year. Traders now see
roughly a coin flip’s chance of that, 51.9%, down from nearly 70% a week
ago, according to data from CME Group.
Recent comments from Fed officials have helped drive the doubt.
Susan Collins, president of the Federal Reserve Bank of Boston, said
late Wednesday that it’s likely appropriate to leave interest rates
steady “for some time.” That was a turnaround from a speech last month,
when she supported another cut.
The Fed’s job became more difficult recently because of the U.S.
government’s shutdown, which delayed updates on the job market and other
signals about the economy. That left it less certain about whether the
slowing job market or high inflation is the bigger threat.
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Jeffrey Vazquez works on the floor at the New York Stock Exchange in
New York, Thursday, Nov. 13, 2025. (AP Photo/Seth Wenig)
 The stock market mostly rose through
the U.S. government’s shutdown, as it has often done historically,
but Wall Street is bracing for potential swings as the government
gets back to releasing those updates. The fear is that the data
could persuade the Fed to halt its cuts to rates.
The “looming data deluge may spur additional volatility in the
coming weeks,” according to Doug Beath, global equity strategist at
Wells Fargo Investment Institute.
On Wall Street, The Walt Disney Co. helped lead the market lower
after falling 7.7%. The entertainment giant reported profit for the
latest quarter that topped analysts’ expectations, but its revenue
fell short.
That helped offset a jump of 4.6% for Cisco Systems after the tech
giant delivered profit and revenue that were bigger than analysts
estimated.
Another one of the relatively few stocks to rise was Berkshire
Hathaway, the company run by famed investor Warren Buffett. He is
known for loving bargains and won’t buy stocks when he considers
them too expensive. Berkshire Hathaway rose 2.1%.
All told, the S&P 500 fell 113.43 points to 6,737.49. The Dow Jones
Industrial Average dropped 797.60 to 47.457.22, and the Nasdaq
composite sank 536.10 to 22,870.36.
In the bond market, Treasury yields pushed higher, which put
downward pressure on prices for stocks and other investments.
The yield on the 10-year Treasury rose to 4.12% from 4.08% late
Wednesday.
In stock markets abroad, indexes sagged in Europe following modest
gains in Asia.
Tokyo’s Nikkei 225 index rose 0.4%, even as Japanese tech giant
SoftBank Group lost another 3.4%. It’s been struggling since it said
earlier this week that it had sold all of its $5.8 billion stake in
Nvidia.
Another loser was bitcoin, whose price fell back below $99,000. It
had been nearing $125,000 last month.
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AP Writers Teresa Cerojano and Matt Ott contributed.
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