Stock Market Today: Dow, S&P 500, Nasdaq Set to Open Down; Nvidia, CoreWeave, Tesla, More Movers
Stocks looked set to fall again on Tuesday, as investors continued to dump risk assets as they waited for Nvidia’s blockbuster earnings report and September nonfarm payroll numbers.
Futures tracking the Dow Jones Industrial Average slid 125 points, or 0.3%. S&P 500 futures were down 0.3%, and contracts tied to the tech-heavy Nasdaq 100 also dropped 0.3%.
The three major indexes all dropped on Monday, capping off the largest three-day decline for the Dow and S&P since mid-April.
Cryptocurrencies, the riskiest of all risk assets, capture the market’s gloomy mood. Bitcoin was down 1.3% to $90,694 in early trading, its lowest level since mid-April. The token has now dropped seven out of the past eight days, and is down 17% since the start of November.
There hasn’t been an obvious catalyst for the selloff, other than investors questioning bloated artificial-intelligence valuations following months of gains. Nvidia’s earnings on Wednesday should show how that particular trade is holding up, given the chip maker is often seen as a bellwether for AI demand.
Wall Street may also be opting to take some money off the table ahead of a slew of economic data that were delayed by the government shutdown. Thursday’s jobs report could be crucial in determining whether the Federal Reserve will cut interest rates in December.
“With AI optimism colliding with uncertainty over the Fed’s next move, pre-event positioning kept risk appetite in check,” Hargreaves Lansdown analyst Matt Britzman said. “Longer-term investors can stick to their guns, pullbacks are never fun but are often healthy, especially in a market that’s showing signs of frothiness.”
The yield on the benchmark 10-year U.S. Treasury note slipped 3 basis points to 4.11% on Tuesday. The dollar was 0.1% lower against a weighted basket of its peers, and gold futures dropped 1.1% to $4,028 an ounce.
