Stocks fell on Thursday, as a market-wide rally sparked by blockbuster Nvidia results and guidance gave up steam and as investors lost hope that the Federal Reserve would cut rates again in December.

The Dow Jones Industrial Average fell 386.51 points, or 0.84%, to settle at 45,752.26, after rallying more than 700 points at session highs. The S&P 500 shed 1.56% to end the day at 6,538.76, despite rising as much as 1.9% earlier in the day. The Nasdaq Composite fell 2.16% to finish at 22,078.05, down from a 2.6% advance at one point in the session.

Nvidia's reversal lower dragged the broader market down. Shares had gained as much as 5% after the chipmaker released better-than-expected quarterly results and an upbeat fourth-quarter sales forecast. However, the stock ultimately closed down 3%, despite CEO Jensen Huang's reassurances that demand for its current-generation Blackwell chips are "off the charts." He also rejected the idea of an AI bubble.

But the stellar results were not enough to keep the stock or the market higher with concerns swirling about AI stock valuations, especially if the Fed doesn't lower interest rates. Oracle and AMD were among the first AI plays to fall into the red on the session, followed by Nvidia.

Adding to downward pressure was a shutdown-delayed September jobs report that showed the economy added 119,000 jobs, more than economists' expected. Following the data, the latest fed funds futures trading showed less than 40% odds that the central bank would cut for a third time this year next month — a negative for investors betting on lower interest rates.

"The Nvidia sizzle is being extinguished by the lowering probability of a December rate cut," said Jeff Kilburg of KKM Financial. "Markets expected a December cut, the narrative has seemingly changed."

Thursday's turn builds on a relatively weak month for the AI trade and markets as investors took profits on the names after such a strong year. Nvidia is on track to finish November down more than 8%, pacing for its worst month since March.

Walmart shares were able to keep gains, rising around 6% on Thursday following stronger-than-expected sales and revenue for its fiscal third quarter, partially due to its e-commerce business' growth. The move in Walmart — seen as a steady stock in any economy — was partly tied to a ongoing rotation out of higher-valued tech into defensive-oriented companies.

"It's taking the market awhile to sort of digest where it wants to be positioned, with regard to the growth versus value trade and with exposure to risk versus risk-off [assets]," Thomas Martin, a senior portfolio manager at Globalt Investments, told CNBC.