Finance

High borrowing costs and concerns over AI buildout financing heavily penalized tech equities, triggering the Nasdaq's sharpest daily drop since July. Heavyweights like Nvidia, Broadcom, and Advanced Micro Devices posted significant losses during the session. Financial pressures also hit AI infrastructure plays, sending CoreWeave bonds down to distressed trading levels.

Wall Street experienced an aggressive pullback, causing the S&P 500 to slide 1.11% and snap its historically long streak without a 1% daily decline. The Nasdaq Composite dropped 1.88%, while the Dow Jones Industrial Average minimized its losses but still closed lower. Trading volume across U.S. exchanges outpaced its 20-session average as small-cap equities in the Russell 2000 fell into correction territory.

Bank of America's stock dropped roughly 5% to 6% following disappointing financial results for the third quarter. The firm's revenue and profits missed analysts' estimates, exacerbated by a massive $1.2 billion penalty from the U.S. Treasury Department over anti-money laundering and sanctions violations. Other financial sector peers, such as State Street, similarly slid after reporting underwhelming revenue metrics.