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Risk-Off Grips Markets as Nvidia Slips Before Earnings and Fed Cut Odds Recede

The next direction hinges on Nvidia’s Wednesday results followed by Thursday’s delayed U.S. jobs report.

Overview

  • U.S. stocks opened lower Tuesday, with Nvidia down roughly 2% one day before its quarterly report, extending pressure on high-valuation AI shares.
  • Monday’s session closed in the red as the Dow fell 1.18%, the S&P 500 dropped 0.92% and the Nasdaq lost 0.84%, while the VIX jumped about 13%.
  • Rate-cut expectations were repriced, with CME FedWatch showing greater odds the Federal Reserve holds rates in December compared with a month ago.
  • Cross-market caution broadened as Bitcoin fell below $90,000 to a seven-month low and European indices declined, including Spain’s Ibex 35 down about 1.3%.
  • Large investor moves sharpened the valuation debate: Berkshire Hathaway disclosed about $4.3 billion in Alphabet shares while Peter Thiel’s fund sold its entire Nvidia stake.