Post by : Badri Ariffin

Wall Street braced for turbulence on Tuesday as US stocks retreated, fueled by growing concerns over a potential AI-driven market bubble and lingering economic uncertainties. The Dow Jones Industrial Average dropped nearly 500 points, down 1.1%, while the Nasdaq Composite slipped 1.2%, marking a continuation of a four-day losing streak. The S&P 500 also edged lower by 0.8%, rebounding slightly during the session but still reflecting cautious investor sentiment.

Bitcoin mirrored this risk-off mood, briefly dipping below $90,000 for the first time in seven months, erasing its year-to-date gains.

Investors’ attention is now sharply focused on two major developments this week. Chipmaker Nvidia is set to release its third-quarter results on Wednesday, a key gauge of the AI-driven rally that has buoyed Big Tech throughout the year. On Tuesday, Nvidia shares dropped as much as 3% before closing down nearly 2.7%, while Amazon and Microsoft fell 4.3% and 2.7% respectively, highlighting the fragile confidence in the sector.

Adding to market jitters, Thursday’s September jobs report will be closely watched after the US government shutdown delayed official economic data releases. Analysts note that the report could influence expectations for the Federal Reserve’s next move, as traders scale back bets on rate cuts, now pricing in roughly equal odds of easing.

Early data from ADP on Tuesday indicated that private sector job losses were slowing heading into November, offering a mixed signal on labor market strength. Retail earnings will also be under the spotlight, with Home Depot cutting its full-year profit guidance after missing estimates, while Walmart and Target are set to release results later in the week, giving insight into consumer spending trends ahead of the holiday season.

As markets navigate these multiple pressures—from tech valuations to macroeconomic uncertainty—investors remain cautious, weighing the sustainability of gains against fresh data points that could reshape market sentiment in the coming days.

#Business News