United States equities fell on Monday (Tuesday AEDT) amid renewed weakness in major technology names ahead of a pivotal week for earnings and economic data.
The Dow Jones Industrial Average slid 557.2 points or 1.2% to 46,590.3, the S&P 500 dropped 61.7 points or 0.9% to 6,672.4, while the Nasdaq Composite declined 192.5 points or 0.9% to 22,708.1.
Nvidia closed 1.9% lower ahead of its closely watched third-quarter results, due after the closing bell on Wednesday (Thursday AEDT).
The chipmaker, along with other high-flying AI names, has come under pressure as investors reassess stretched valuations following this year’s strong run-up.
Retail earnings will also be in focus, with Walmart, Home Depot and Target set to report this week, marking the end of the quarterly earnings season.
Home Depot, which will release results before Tuesday’s open, finished the session 1.2% lower.
Meanwhile, Alphabet bucked the broader sell-off, rising 3.1% to touch intraday record highs after Warren Buffett’s Berkshire Hathaway disclosed a new stake in the Google parent.
On the data front, the New York Fed’s Empire State Manufacturing Index climbed to a one-year high, with general business conditions rising to 18.7, well ahead of the 6 expected and above the previous reading of 10.
Market attention will also be focussed towards the September nonfarm payrolls report later this week, the first major economic release since the end of the U.S. government’s data blackout.
Investors will also parse the Federal Reserve’s October meeting minutes for any clues on the policy outlook, even if the information predates recent shutdown-related distortions.
Expectations for a December rate cut have eased significantly. Fed funds futures now imply a 44.9% chance of a 25-basis-point reduction at the central bank’s final meeting of the year, down from more than 90% a month ago, according to the CME Group FedWatch Tool.
On the bond markets, Treasury yields edged lower, with the 10-year slipping 0.3% to 4.135% and the 2-year easing 0.1% to 3.608%.
