U.S. stock markets experienced a notable downturn, as major indices like the Nasdaq and S&P 500 fell sharply due to diminishing hopes for Federal Reserve rate cuts in the near future. Investors reacted to robust economic data, which has raised concerns over inflation, leading to climbing bond yields. Tech stocks led the declines, with significant losses from major companies like Nvidia and Palantir, exacerbated by new regulatory measures. Market analysts suggest the current climate raises questions about further market stability, with some viewing this as a potential buying opportunity amidst ongoing volatility.