U.S. stock futures fell on Tuesday as worries about an artificial intelligence bubble continued to lift markets, with Nvidia’s ( NVDA ) key earnings report and delayed jobs data on the horizon.
Dow Jones Industrial Average futures (YM=F) fell 0.7%, the worst three-day period for the blue-chip benchmark since April. The tech-heavy Nasdaq 100 (NQ=F) fell 0.8 percent, while the S&P 500 (ES=F) shed about 0.6 percent.
Bitcoin briefly fell below $90,000 for the first time in seven months on Tuesday, extending a selloff that erased all of the leading cryptocurrencies’ gains for the year. That sparked jitters in Asia, where Japanese stocks posted their biggest losses since April, and helped lower the 10-year Treasury yield (^TNX).
Concerns about an AI bubble and the US economy have fueled risk-off sentiment as markets begin to show signs of tension. Investors are awaiting two key tests of these concerns in the coming days.
Chipmaker Nvidia reported third-quarter results on Wednesday as investors reconsidered the durability of this year’s AI-fueled market rally. There is also a lot of focus on Big Tech’s debt issuance, as analysts question the high costs of AI data center development.
On Thursday, Wall Street will look to September. jobs report released to help shape expectations for the Federal Reserve’s next policy moves. This is the first major economic reading since the US shutdown delayed the release of official data. Traders have significantly reduced the odds of a rate cut from full conviction a month ago and now see a 46% chance of a cut.
Meanwhile, the retailer’s revenue stream should provide insight into consumer strength ahead of the holiday season. Home Depot ( HD ) cut its full-year profit guidance as its earnings missed forecasts before the bell, sending shares down nearly 4%. Also expected this week are major chains Walmart ( WMT ) and Target ( TGT ).
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