The stock market’s early rally fizzled by the afternoon, with the S&P 500 swinging from a nearly 2% gain to a slight selloff by midday. Nvidia, which initially jumped after reporting strong earnings, reversed 1% into the red along with the rest of the megacap AI trade.

The broader market mood wasn’t helped by mixed economic data and uncertainty around the Federal Reserve’s next move, especially after a cancelled jobs report and signs of uneven labor-market conditions. And then, there’s Ray Dalio.

The billionaire founder of Bridgewater Associates warned in a CNBC interview Thursday that investors are misreading the underlying mechanics of today’s rally, even as AI giants like Nvidia insist the boom is nowhere near finished.

“There is definitely a bubble in markets,” Dalio said, adding th

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