Fed's Warning on Rate Cuts Sends Nasdaq Plummeting: Stock Market Update

The Nasdaq dropped nearly 2% as the Federal Reserve indicated that interest rates will need to remain elevated for a longer period of time to combat inflation. Despite strong earnings from Nvidia, the stock market reversed lower. Disney shares hit their lowest level in nearly nine years as the company faces challenges in its parks business, linear TV division, and streaming service. Analysts suggest a potential break-up of Disney to address these issues. Nvidia's earnings report exceeded expectations, but AI-related stocks experienced a sell-off as the AI trade enters a "show me phase." Warner Bros. Discovery announced the launch of "CNN Max," a 24/7 streaming news offering, to increase engagement on its streaming platform.