NEW YORK - US stock indexes erased early gains and finished lower Thursday, as investors weighed Nvidia's strong earnings against shifting expectations for Federal Reserve rate cuts following the release of the long-delayed September jobs report.

The Dow Jones Industrial Average fell by 386.51 points, or 0.84 percent, to 45,752.26, after rallying more than 700 points at session highs. The S&P 500 sank 103.4 points, or 1.56 percent, to 6,538.76. The Nasdaq Composite Index shed 486.18 points, or 2.15 percent, to 22,078.05.

Ten of the 11 primary S&P 500 sectors ended lower, with technology and consumer discretionary leading the laggards by dropping 2.66 percent and 1.73 percent, respectively. Meanwhile, consumer staples bucked the trend by rising 1.11 percent.

Nvidia shares jumped nearly 5 percent at the open after the chipmaker delivered an earnings beat and projected stronger-than-expected revenues for the fourth quarter. Nvidia CEO Jensen Huang said demand for the company's Blackwell chips is "off the charts," dismissing concerns about an AI bubble.

However, the standout results ultimately failed to support the stock or the broader market. With skepticism mounting over lofty AI valuations, especially if the Fed does not ease policy, early gains evaporated. Oracle and AMD turned negative first, followed by Nvidia, which slid nearly 3 percent.

The session was further shaped by the September nonfarm payrolls report, the first major economic data since the record U.S. government shutdown ended. The US economy added 119,000 nonfarm jobs in September, beating expectations for a 51,000 increase, while the unemployment rate rose to 4.4 percent as more workers reentered the labor force.

In interest rate markets, traders priced in around a 38-percent chance of a December rate cut following the data. Minutes from the Fed's October meeting highlighted policymakers' "strongly differing views" on whether a cooling labor market or persistent inflation poses the larger risk.

U.S. jobs growth was stronger than expected in September, but unemployment also rose amid workers returning to seek jobs, said James Knightley, ING's chief international economist. "Given the Fed's recent hawkish shift and the lack of official data scheduled before the 10 December Federal Open Market Committee meeting, it is understandable that the market thinks the next move won't come until early 2026."

On the corporate front, Walmart raised its full-year outlook after delivering better-than-expected third-quarter profit and sales. Walmart shares rose 6.46 percent as investors parsed the results for clues about consumer resilience heading into the holiday shopping season.