US stocks extended their losses on Thursday amid pressure from companies with AI exposure, while a higher portion of the market positioned for a rate hold in the Federal Reserve's next meeting. The S&P 500 and the Nasdaq 100 fell 1.4% and 2.1%, respectively, while the Dow fell 1.2%. Optimism surrounding the end of the US government shutdown supported defensive sectors following the Dow's record-high yesterday. Still, indices were dragged by sharp losses for tech giants amid further skepticism on whether high valuations for AI companies and hardware producers are warranted, with Nvidia, Broadcom, Oracle, and Palantir dropping between 5.5% and 4%, while Tesla sank over 7%. Meanwhile, Disney tumbled over 7.5% after reporting mixed earnings results. Official incoming economic data may confirm the pessimistic signals from private surveys since October, but concerns of high inflation and hawkish Fedspeak supported bets that the Fed may hold rates next month.