U.S. Stocks Slide as Tech Weakness Deepens Before Nvidia Results
Investors turn cautious, citing lofty AI valuations, higher leverage, reduced odds of a December rate cut.
Overview
- By late morning, the Dow fell 0.75% to 46,239.59, the S&P 500 slipped 0.36% to 6,650.14, and the Nasdaq lost 0.47% to 22,600.73.
- Nvidia and Microsoft declined 1.63% and 1.49%, respectively, while Home Depot dropped 3.93% after weaker-than-expected results.
- Traders trimmed bets on a December Federal Reserve cut as they monitored remarks from Michael Barr, Thomas Barkin and Lorie Logan.
- Concerns over AI-related valuations and rising leverage grew after a fresh Amazon bond sale joined a wave of tech issuance to fund data centers.
- Tuesday’s drop extended Monday’s retreat, when the Dow fell 1.18%, the S&P 500 lost 0.92% and the Nasdaq declined 0.84%.