The Dow Jones Industrial Average dropped over 300 points Tuesday ahead of a much-anticipated earnings report from Nvidia scheduled for Wednesday. Also of concern to traders is the shutdown-delayed jobs report from September. which is set to be released on Thursday and is likely to affect key Federal Reserve’s policy moves. 

On Tuesday, Nvidia and Microsoft announced plans to invest billions into Anthropic, the AI company responsible for the AI assistant Claude, a competitor of OpenAI’s ChatGPT and Google’s Gemini. Nvidia, one of the powerhouse stocks driving the AI boom in 2025, will commit up to $10 billion to secure computing power as the big tech giants race to build superhuman intelligence assets. 

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But Nvidia’s investment announcement did little to soothe traders, who are concerned about the exorbitant valuations of major tech companies. The tech-heavy Nasdaq has fallen more than 5 percent since setting record highs in late October. 

“Is AI priced too high or not?” asked Professor Emeritus of Finance Jeremy Siegel of the Wharton School during a Monday appearance on CNBC. “It’s almost a third of the S&P, so if it goes down you’re going to go down on an index. But you have to admit, AI is a revolution unlike anything we’ve seen in our lifetime.” 

Bitcoin has also fallen sharply in recent weeks, losing its $100,000 level and dragging down all of the cryptocurrency sector along with it. Ethereum, which posted an all-time high of $4,830 in late August is treading water above $3,000 as more than $1 billion worth of leveraged crypto bets were liquidated over the weekend.