The Dow Jones Industrial Average fell 0.8% in Thursday’s stock market session. The S&P 500 slid 1.6% and the Nasdaq Composite dropped 2.2%.
Beyond the S&P 500, the Russell 2000 lost 1.9% and the S&P Mid Cap 400 declined 1.6%, suffering losses similar to the larger-cap indexes.
Stocks initially surged on Thursday as Nvidia jumped sharply on strong earnings, fueling a powerful rally in AI names and many high-beta stocks.
All of them staged sharp intraday reversals, sinking the final session. The intraday reversal underscored weakening momentum in AI despite NVIDIA’s strong gains.
Market action further reinforced concerns that the latest rally to record highs has become overly dependent on mega-cap leadership and expectations for additional Fed policy easing. NVIDIA’s inability to hold its gains after a blowout earnings report highlighted deteriorating sentiment around the AI trade, keeping major indexes from holding above their key 50-day moving averages.
Many leading stocks, especially across the broader AI space, also traded poorly, including Advanced Micro Devices (AMD), GE Vernova (GEV), Vertiv (VRT), and Sandisk (SNDK).
Bitcoin fell 3.5% to $86,337.18, its lowest level in seven months, after rebounding to nearly $93,000 just overnight.
Only the consumer staples sector finished higher today. The group was supported by Walmart (WMT) after an earnings beat, while the defensive nature of the sector helped it largely withstand the broad market sell-off.
Walmart Inc. (WMT) Q3 2026 Financial Results
Walmart reported consolidated revenue up 6% in Q3 2026, with e-commerce rising 27%. Adjusted EPS reached $0.62, up 7%, and operating cash flow totaled $27 billion. U.S. sales increased 4.5% (e-commerce +28%), U.S. Sam’s Club sales rose 3.8% (e-commerce +22%), and international sales grew 11.4% with operating income up 16.9%, highlighted by strong performance in Flipkart, China, and Mexico. Global advertising revenue rose 53%, and membership revenue increased 17%.
The company is advancing AI and automation: 50% of e-commerce volume and 60% of store operations are automated, deploying the AI assistant “Sparky” and enabling purchases via ChatGPT for a personalized omnichannel experience.
Walmart’s strategy focuses on increasing market share while maintaining core pricing (7,400 discounted items), expanding Walmart+ services with additional membership benefits. Market share gains were noted in FMCG, health, and apparel, with cost efficiencies achieved as over 40% of new code is AI-generated.
The market’s fear gauge spikes
The CBOE Volatility Index, or VIX, reversed sharply higher, jumping 11.7% to 26.42 — the highest close since late April. During the session, the market’s fear gauge reached 28.27, the highest level since 28.99 on October 17. This elevated VIX reading may suggest the market is nearing a short-term bottom, but that does not necessarily mean it will happen immediately or that it will last.
If the market enters a significant correction or a bear market, the VIX could surge even further. The index previously reached 60.13 on April 7.
Economic data
The September jobs report — typically a lagging indicator — showed that the labor market did not collapse in September. In fact, nonfarm payroll growth accelerated to 119,000 after a decline of 4,000 in August.
Initial jobless claims for the week ending November 15 fell by 8,000 to a low 220,000. Continuing jobless claims for the week ending November 8 rose by 28,000 to a not-so-low 1.974 million, the highest level since November 6, 2021.
Existing home sales rose 1.2% month over month in October, reaching a seasonally adjusted annual rate of 4.10 million, up from September’s downwardly revised 4.05 million. Sales were up 1.7% year over year.
The path ahead
The stock market continues to face heavy selling pressure, eroding the gains of major indexes and previously strong leading stocks. Investors who bought in Thursday morning nearly immediately found themselves in a losing position if they did not exit promptly. In a highly volatile environment, participating in the market must be paired with the ability to retreat quickly and with absolute discipline.
While the potential for a rebound always exists, the recent string of failed rallies indicates that the market lacks internal strength. The risk of entering a correction from the uptrend that began in early April is increasing, and if that scenario unfolds, many leading stocks could suffer significant losses.
In an environment where interest rates remain uncertain and economic indicators point to slowing momentum, investors should maintain a defensive stance, prioritize risk management, and keep a higher cash allocation.
