Wall Street sinks as Nvidia drops, Fed rate-cut worries grow

STORY: Wall Street ended sharply lower Thursday with the Dow and S&P 500 falling about one and two-thirds percent each and the Nasdaq dropping about two and a quarter percent.Nvidia and other AI heavyweights suffered steep losses as investors scaled back expectations for interest rate cuts from the Federal Reserve due to inflation worries and divisions among central bankers about the U.S. economy's health.:: FileA growing number of Fed policymakers in recent days have signaled hesitation about further rate reductions, citing worries about inflation and signs of relative stability in the labor market after two cuts this year.Sean O’Hara, president of Pacer ETFs, says he views the market decline as a temporary setback.“We're getting close to the end of the year. Perhaps we're seeing a little bit of profit taking take place. So I'm not overly concerned. I think the overall fundamentals are still solid. I think earnings growth is good. I think we'll get another Fed cut. And as we go into next year, we'll probably get more. And, you know, I think, you know, when people file their taxes based on this year, based on what's happened, I think we'll have somewhat of a stimulus package there because people will get refunds until there'll be more money coming into equities.”Other stocks on the move included Walt Disney, which lost nearly eight percent after the media giant signaled it was preparing for a potentially prolonged fight with YouTube TV over distribution of its cable channels.And shares of Cisco Systems rose more than four and a half percent after the company raised its full-year profit and revenue forecasts, betting on demand for its networking equipment.