S&P 500, Nasdaq post worst day since July as AI trade falters

The S&P 500 and Nasdaq have experienced their worst trading day since July as the AI trade falters. This downturn ends the US stock market's longest streak of tranquility since before the Covid-19 pandemic. Investor confidence is significantly impacted by rising inflation and interest rate fears, which could hinder growth within the AI sector. These factors have collectively pressured tech-heavy markets, leading to a sharp decline in stability across the broader financial landscape.