U.S. Stock Market Faces Challenges Amid AI Stock Declines and Labor Market Data

According to Odaily, the U.S. stock market's rebound has stalled due to declines in major AI-related stocks and traders analyzing data indicating further weakening in the labor market. The S&P 500 index opened 0.2% lower, primarily affected by drops in the technology and communication services sectors. Nvidia was the largest drag on the index after SoftBank sold its entire stake in the chipmaker to fund other AI investments, cashing out $5.83 billion, leading to a decline in Nvidia's stock price. Citi Research data reveals that investors have increased bearish bets on the stock market over the past week, including a net addition of $3.75 billion in short positions on the Nasdaq. Analyst Chris Montagu noted that new short positions have dominated U.S. stock market fund flows. Traders have also received more data on the weakening U.S. labor market, as ADP reports show that in the four weeks ending October 25, U.S. private sector jobs decreased by an average of 11,250 per week.