United States benchmark averages retreated on Tuesday (Wednesday AEDT) as continued pressure on major technology names weighed on broader market sentiment.
Investors remained cautious about the lofty valuations of artificial intelligence-linked companies, prompting a fourth consecutive day of declines for the S&P 500.
The Dow Jones Industrial Average fell 498.5 points or 1.1% to 46,091.8, the S&P 500 slipped 55.1 points or 0.8% to 6,617.3, and the Nasdaq Composite declined 275.2 points or 1.2% to 22,432.9.
Market losses were led by Nvidia, which dropped more than 1% amid mounting anticipation around its third-quarter results due after Wednesday’s close.
The chipmaker’s shares have fallen 7.1% since last week as investors debate the longevity of the AI-driven equity rally and whether valuations remain justified, particularly as Big Tech continues to issue record volumes of debt.
Amazon shed 4.4%, while Microsoft lost 2.7%.
An expansive AI partnership unveiled on Tuesday failed to buoy sentiment. Anthropic said it would spend US$30 billion with Microsoft, while Microsoft and Nvidia pledged to invest billions in the AI start-up.
Shares of both tech giants remained firmly lower despite the announcement, suggesting that investors may be reassessing the value of large-scale AI investment deals.
Elsewhere, Home Depot shed 6% after posting mixed third-quarter results, delivering higher-than-expected revenue but missing profit forecasts.
The company reported adjusted earnings per share (EPS) of $3.74, below market expectations of $3.84, while revenue reached $41.35 billion, narrowly topping the consensus estimate of $41.15 billion.
The update raised fresh concerns about the strength of the U.S. housing market and the durability of consumer spending heading into year-end.
Bitcoin added to the broader risk-off tone after briefly slipping below $90,000 before recovering. The cryptocurrency’s decline unsettled some tech-focused investors, many of whom also hold substantial digital-asset positions.
On the bond markets, Treasury yields eased, with the 10-year and 2-year notes falling 0.5% and 1% to 4.117% and 3.577%, respectively.
