Wall Street stocks slid on Thursday in a sharp reversal from an early rally, as technology gains faded after a boost from Nvidia's earnings and U.S. jobs data muddied the labor market outlook.

Market Snapshot

The Dow Jones Industrial Average fell 386.51 points, or 0.84%, to 45,752.26, the S&P 500 lost 103.40 points, or 1.56%, to 6,538.76 and the Nasdaq Composite dropped 486.18 points, or 2.15%, to 22,078.05.

Market Movers

Nvidia - Nvidia stock fell 3.2% after rising sharply earlier in the session on the back of abetter-than-expected third-quarter earnings report. The chip maker also issued rock-solid revenue guidance: For the current fourth quarter, it’s expecting revenue in a range with a midpoint of $65 billion, well above the $62.2 billion analysts were expecting. Nvidia CEO Jensen Huang said the AI business was looking robust, and sales for the company’s Blackwell chip were “off the charts.”

Nvidia’s decline dragged other AI plays lower. Chip maker Micron Technology, software developer Palantir Technologies, and server maker Super Micro Computer fell 10.9%, 5.9%, and 6.4%, respectively.

AMD was down 7.8%. It, too, had traded higher earlier in the day. The Commerce Department approved the sale of up to 70,000 advanced AI chips to two companies based in the Middle East, according toThe Wall Street Journal. AMD has an agreement worth billions of dollars to work with one of the companies, Saudi Arabia’s Humain.

Other Big tech stocks dropped. SanDisk fell 20.3%; CoreWeave fell 7.6%; Oracle fell 6.6%; Amazon fell 2.5%; Tesla fell 2.2%; Microsoft fell 1.6%;

Exact Sciences, Abbott Laboratories - Exact Sciences surged 16.8% after Abbott Laboratories agreed to purchase the cancer screening company in acash deal worth around $21 billion.Exact Sciencesstockholders will receive $105 a share in the acquisition. Abbott also will absorb Exact Sciences’ estimated $1.8 billion of net debt, for a total enterprise value of around $23 billion. Abbott shares fell 1.7%.

Walmart - Walmart gained 6.5%. The world’s largest retailer posted adjusted earnings of 62 cents a share and $179.5 billion in revenue for thefiscal third quarter, topping consensus estimates, and raised its fiscal-year guidance. The company separately announced it was transferring the listing of its common stock and nine bonds to the Nasdaq from the New York Stock Exchange.

Alphabet - Google parent Alphabet dropped 1.2%. Shares hit a record closing high on Wednesday of $292.82 amid rave reviews for Google’s new Gemini AI model. Alphabet stock has surged 56% this year. It was briefly on track to overtakeMicrosoftto become the third-largest U.S. company by market value.

IBM, Cisco - IBM gained 0.7%. The storied tech giant said it planned to develop a network of quantum computers alongside Cisco Systems, and would demonstrate the ability to link systems over increasingly longer distances by the early 2030s. Cisco stock turned 3.8% lower after rising earlier in the session.

Palo Alto Networks - Palo Alto Networks fell 7.4%. The cybersecurity company’s earnings and revenue forecast met analysts’ expectations but failed to impress investors. Palo Alto Networks also said it intends to purchase Chronosphere, a cybersecurity company focused on observability tools, for $3.35 billion.

Cipher Mining - Cipher Mining fell 0.4%. The data center operator unveiled a $830 million expansion to its existing agreement with Fluidstack, an AI cloud platform. The deal is backed by Google.

PACS Group - PACS Group soared 55.3%. Third-quarter revenue at the nursing home operator came in at $1.34 billion, topping the $1.11 billion analysts were anticipating, while earnings missed forecasts. For the full year, PACS sees revenue in the range of $5.25 billion to $5.35 billion, sharply above the $4.87 billion analysts were expecting. The company also said it was compliant with Securities and Exchange Commission filing requirements after months of uncertainty.

Bath & Body Works - Bath & Body Works slumped 24.8%. The maker of body lotion and scented candles posted worse-than-expected earnings and sales in its fiscal third quarter and lowered its fiscal-year guidance, citing “recent negative macro consumer sentiment weighing heavily on our consumers’ purchase intent.”

Oddity Tech - Oddity Tech gained 6.5%. The consumer tech company posted $147.9 million in revenue in its third quarter, above FactSet consensus estimates of $145.5 million, and adjusted earnings of 40 cents a share, topping calls for 36 cents. Oddity also boosted its net revenue and adjusted earnings guidance for the full year.

Regeneron Pharmaceuticals - Regeneron Pharmaceuticals climbed 5%. The drugmaker said the Food and Drug Administration had approved Eylea HD for the treatment of patients with macular edema following retinal vein occlusion, a common cause of vision impairment in adults.

Jacobs Solutions - Jacobs Solutions pared earlier gains and turned 11% lower. Fourth-quarter adjusted earnings of $1.75 a share topped the $1.68 consensus among analysts polled by FactSet. Gross revenue rose 6.6% to $3.15 billion, in line with expectations.

Market News

US Posts Solid Job Growth in September, but Unemployment Rate Rises

U.S. employment growth accelerated in September, but the labor market remained sluggish and failed to keep pace with new job-seekers as employers dealt with fallout from import tariffs and integrated artificial intelligence into some positions.

The jobless rate rose to 4.4%, its highest level in four years, from 4.3% in August, the Labor Department said in its closely watched employment report on Thursday. The August payrolls data was revised to show employers shedding jobs for the second time this year, underscoring the labor market softness.

Nonfarm payrolls increased by 119,000 jobs after a downwardly revised drop of 4,000 in August, the Labor Department's Bureau of Labor Statistics said. Economists polled by Reuters had forecast 50,000 jobs would be added after a previously reported gain of 22,000 in August. The survey of establishments also showed job growth in July was downgraded by 7,000 to 72,000 positions.

Fed Officials Eye Financial Stability as They Debate Next Rate Move

Concerns about financial market stability, including the potential for a sharp drop in asset prices, are emerging as a fresh theme for Federal Reserve officials as they debate when and even whether to cut interest rates further.

In a talk at Georgetown University on Thursday, Federal Reserve Governor Lisa Cook did not offer a view on near-term interest-rate policy specifically.

But she called out a range of risks to the financial system, including fast-growing private credit markets, hedge fund trading in the Treasury securities market, and the adoption of generative artificial intelligence into machine-based trading.