Why the Stock Market is Crashing Today

By Wednesday afternoon, the U.S. stock market plunged, completely halting the week-long streak of bullish growth in almost every large company and every index fund.

This is not an understatement. Almost every metric is down today, a statistic which we have not seen since the Japanese crash in the markets almost three weeks ago.

An image of metrics in the stock market, on Yahoo Finance.

It is clear that the market is crashing and is proving to be bearish in terms of returns. No large company today reported beneficial rates of return for investors, even most of the large Nasdaq-listed tech companies which saw dramatic booms in recent months due to AI and technological innovations. Even Nvidia, which is considered to be the leader of the AI Revolution, has plummeted today.

Yet, no particular reason has actually been addressed for today's red market. But why?

Despite previous reasons for a stock market crash, from news of a company's mismanagement of its funds, to a global issue becoming widespread, today's results have come without any major natural, involuntary factor contributing to its decline.

But, there is one reason for today's bear market: Nvidia. Nvidia, Nvidia, Nvidia. The name of a company which most investors have become accustomed to as of recent.

Nvidia, as mentioned earlier, has been described by many as the leading company in the AI age. It has experienced straight bullish results for the past year, surpassing the likes of Apple and Microsoft to becoming the most valued, highest-returning company for its investors.

Despite this, the highly successful company to blame for the market's deep decline. It is very close to unveiling its long-awaited earnings report on Wednesday evening, which could have implications for the reception of the AI industry. Nvidia is basically at the forefront of AI advancements, so any changes in revenue could show failures or successes in AI in bringing the markets forward.

Even worse for the company, new reports before the release of its earnings report indicated signs of an underperforming report, ending Nvidia's year-long streak of constantly overperforming expectations.

This is proven also by the earnings reports of many big tech companies. From Tesla to Apple to Amazon to Microsoft, most large Nasdaq companies saw heavy declines in revenue, all of which were involved in AI. Could Nvidia be next?

Well, maybe. The company is heavily overvalued in share price, with stocks outperforming company growth, and AI has become less enthused by investors after failures across the board in other companies. Even Fiverr, the largest AI freelancer company, has not grown significantly since 2021.

Even despite these trends, Nvidia has proven itself to be a market-leading producer in wealth, constantly with ease outperforming expectations.

Whatever happens, one thing is certain: the markets will move. Big time.