Stock market today: Dow, S&P 500, Nasdaq sink as AI concerns, US economy hits markets ahead of Nvidia earnings
US stocks weakened on Tuesday as concerns over the AI bubble and the broader US economy continued to keep markets on edge, with Nvidia’s (NVDA) crucial earnings report and jobs data pending as the shutdown looms.
The Dow Jones Industrial Average (^DJI) fell about 0.9%, or about 400 points, coming off the worst three-day move for the blue-chip benchmark since April. The tech-heavy Nasdaq Composite (^IXIC) retreated nearly 1%. The S&P 500 (^GSPC) fell about 0.7%, eyeing its fourth straight losing session.
Bitcoin briefly dipped below $90,000 on Tuesday for the first time in seven months, deepening a selloff that wiped out all of the leading cryptocurrency’s gains for the year.
Concerns regarding the AI bubble and the US economy add to the risk-off mood, as markets start to show signs of tension. Investors are now watching for two major tests of those concerns in the coming days.
Chipmaker Nvidia’s third-quarter results will be released on Wednesday, at a time when investors are rethinking the durability of this year’s AI-fueled market rally. Nvidia helped lead the decline of big tech companies on Tuesday, dropping as much as 3%. Amazon (AMZN) and Microsoft (MSFT) also both fell about 3%.
On Thursday, Wall Street will look to the release of the September jobs report to help shape expectations for the Federal Reserve’s next policy moves. It was the first major economic reading since the US shutdown delayed the release of official data. Traders have reduced the odds of a rate cut significantly from last month’s total confidence, and now estimate the odds of a rate easing at around 50-50.
Meanwhile, data from ADP on Tuesday showed job losses slowing in the private sector heading into November. And revenue streams from retailers should provide insight into consumer strength heading into the holiday season. Home Depot (HD) cut its full-year profit guidance after earnings missed estimates before the close, sending its share price down nearly 4%. Results from major chains Walmart (WMT) and Target (TGT) are also expected this week.
Source: Google Finance
