Dow slides 1.25% as AI doubts drag US markets ahead of Fed meeting

The Dow Jones Industrial Average fell 1.25%, pulling US equity markets lower after a turbulent week. The S&P 500 and Nasdaq also posted declines, though their exact drops were not disclosed. Fresh doubts over the artificial‑intelligence trade weighed on investor sentiment throughout the session. Traders now await earnings reports from three major tech firms: Alphabet, Microsoft and Amazon. At the same time, market focus is shifting to the Federal Reserve’s policy meeting scheduled for next week. As of 24 Oct 2026, 01:30 AM IST, the broader market mood remains cautious, with AI‑related hype cooling and monetary policy uncertainty looming. ## Context The AI trade refers to a wave of hype‑driven buying in companies tied to generative‑AI products, which can swing sharply on news. The Fed meeting often moves bond yields and risk appetite, making it a key catalyst for stocks.