U.S. equity markets closed out another volatile week with a sharp Friday rebound that could not fully erase earlier losses. The S&P 500 gained roughly 1% on Friday, the Dow Jones Industrial Average rallied nearly 500 points, and the Nasdaq Composite also finished higher on the day as investors embraced renewed odds of a December Fed rate cut. Yet for the week, all three major indices finished in the red amid mounting concern over stretched AI-related valuations and a still‑uncertain policy path. The S&P 500 fell about 1.8%, the Nasdaq declined roughly 2.2%, and the Dow lost approximately 1.8%, marking the worst weekly performance for U.S. large caps since April.
The interplay between powerful micro fundamentals—most visibly in Nvidia’s blockbuster earnings—and macro‑level worries about an AI “bubble,” interest rates, and slowing confidence produced choppy price action and elevated volatility.
