US stocks retreated on Tuesday as worries about an AI bubble and the broader US economy continued to set markets on edge, with a pivotal Nvidia (NVDA) earnings report and shutdown-delayed jobs data on the horizon.
The Dow Jones Industrial Average (^DJI) fell around 1.1%, or nearly 500 points, adding to a rough four-day sell-off. The tech-heavy Nasdaq Composite (^IXIC) pulled back nearly 1.2%. The S&P 500 (^GSPC) was roughly 0.8% lower, rebounding from earlier in the session but still notching its fourth consecutive losing session.
Bitcoin briefly dipped below $90,000 on Tuesday for the first time in seven months, deepening a sell-off that wiped out all of the leading cryptocurrency's gains for the year.
Worries about an AI bubble and the US economy added to the risk-off mood, as markets start to show signs of strain. Investors are now eyeing two key tests of those concerns in coming days.
Chipmaker Nvidia's third quarter results land on Wednesday, at a moment when investors are rethinking the durability of this year's AI-fueled market rally. Nvidia helped lead a Big Tech slide on Tuesday, falling as much as 3% before ending the day down around 2.7%. Peers Amazon (AMZN) and Microsoft (MSFT) fell by around 4.3% and 2.7%, respectively.
Wall Street is also eyeing Thursday's September jobs report release to help shape expectations for the Federal Reserve's next policy moves. It's the first major economic reading since the US shutdown delayed official data releases. Traders have pared rate-cut odds significantly from total conviction a month ago, and are now pricing in a roughly 50-50 chance of easing.
Meanwhile, data from ADP on Tuesday showed job losses slowing in the private sector heading into November. And a stream of earnings from retailers should offer insight into consumer strength ahead of the holiday season. Home Depot (HD) cut its full-year profit guidance after its earnings missed estimates before the bell, pulling its shares lower. Results from major chains Walmart (WMT) and Target (TGT) are also set to hit this week.