Two key reasons for Thursday's market reversal were increased concern that the Federal Reserve would not cut interest rates in December and jitters about an AI bubble not fully extinguished by Nvidia's earnings report.

Nvidia clearly delivered a strong quarter, with revenue of $57 billion (up 62% from one year ago) and earnings per share of $1.30 (up 67% YoY), surpassing analysts' expectations and predictions for about $55 billion and $1.26, respectively.

Nvidia reported quarterly results that handily topped Wall Street expectations, sending the stock sharply higher in after-hours trading.

Yet that wasn't the only impressive part of the business. Gaming sales, Nvidia's second-largest segment, soared by 30% year over year. And professional visualization, which now includes sales of Nvidia's Spark, which the company calls the world's smallest AI supercomputer, rocketed 26.5% sequentially over Q2.

Nvidia shares have fallen more than 12% since their recent peak on Oct. 29—the day it became the world's first $5 trillion company. It's the 16th time shares have "corrected," dropping 10% or more from a recent high,

Strong quarterly earnings from Nvidia and Walmart plus a better than expected September jobs report sent stocks soaring early Thursday.

An early stock-market rally on Thursday has given way to broad-based selling as doubts about the artificial-intelligence trade re-emerged following the latest batch of earnings from Nvidia.

Nvidia’s earnings report crushed analysts’ forecasts and tamped down on the market’s fears of an AI bubble bursting.