US stock market 'rally is exhausted' as AI-driven Nvidia shares stall 

Nvidia shares had climbed 54% in three months on artificial intelligence prospects

The drop in US stocks, despite a bumper report from chip maker Nvidia, shows the rally this year is “exhausted” and portends more declines to come, according to Morgan Stanley’s Michael Wilson.

The bearish strategist — who recently conceded that he was too pessimistic in his outlook for 2023 — said the broader market reaction to the US chipmaker's blowout forecast was a perfect indicator of a market peak.