Dow Jones Today: DJIA Descends on AI Bubble Fears as Tech Stocks Tumble
The Dow Jones (DJIA) is trading lower on Tuesday as concern mounts over whether AI has created a bubble in the stock market ahead of a high-stakes Nvidia (NVDA) earnings report tomorrow after the market close.
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Bank of America’s latest global fund manager poll showed that 45% of investors view an AI bubble as the top tail risk for the stock market. A tail risk refers to an unlikely but high-impact event that can significantly disrupt markets. In addition, a net of 20% of investors believe that companies are over-investing, marking the highest level since 2005.
“This jump is driven by concerns over the magnitude and financing of the AI capex boom,” said BofA analysts. The poll also showed that 53% of investors believe that AI stocks are already in a bubble.
Meanwhile, job growth continues to be “sluggish,” said ADP in its latest National Employment Report. The private payrolls firm announced that private employers shed an average of 2,500 jobs per week for the four weeks ended November 1, which improved from an average weekly loss of 11,250 jobs for the four weeks ended October 25.
Labor market data from the Bureau of Labor Statistics (BLS) is also starting to trickle in, with initial jobless claims for the week ended October 18 totaling 232,000 compared to 219,000 for the week ended September 18. The BLS has yet to release claims data between the two dates because of the government shutdown. Furthermore, continuing jobless claims tallied at 1.957 million for the week ended October 18, the highest since August.
The BLS will publish September’s jobs report, which includes nonfarm payrolls and the unemployment rate, on Thursday at 8:30 a.m. Eastern Time.
The Dow Jones is down by 0.63% at the time of writing.
Which Stocks are Moving the Dow Jones?
Let’s pivot to TipRanks’ Dow Jones Heatmap, which illustrates the stocks that have contributed to the index’s price action.
Both Nvidia (NVDA) and Microsoft (MSFT) are trading lower after announcing a collaboration with Anthropic. Nvidia will invest up to $5 billion in Anthropic, while Microsoft will invest up to $10 billion. In return, Anthropic has committed to purchasing $30 billion of Microsoft Azure compute capacity and up to one gigawatt of compute capacity using Nvidia’s Grace Blackwell and Vera Rubin platforms.
Meanwhile, Apple (AAPL) is in the green after its China iPhone sales grew by 37% year-over-year, according to research firm Counterpoint.
Elsewhere, Merck (MRK) is the top performer within the Dow Jones after announcing a $0.85 dividend for the first quarter of 2026, while Amazon (AMZN) is deep in the red after raising $15 billion through its first bond offering since 2022.
DIA Stock Moves Lower with the Dow Jones
The SPDR Dow Jones Industrial Average ETF (DIA) is an exchange-traded fund designed to track the movement of the Dow Jones. As a result, DIA is falling alongside the Dow Jones today.
Wall Street believes that DIA stock has room to rise. During the past three months, analysts have issued an average DIA price target of $540.49, implying upside of 16.93% from current prices. The 31 holdings in DIA carry 29 buy ratings, two hold ratings, and zero sell ratings.
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