Wall Street Under Pressure: AI Concerns And A Strong Labor Market Complicate The Outlook

Wall Street suffered a sharp sell-off: The S&P 500 fell 4.4% and the Nasdaq Composite dropped 5.5%, as concerns about AI infrastructure investment hit technology stocks. Strong employment data complicated the Fed outlook: U.S. payrolls rose by 165,000 and unemployment fell to 4.1%, giving the Fed more room to keep monetary policy restrictive.