US stock futures retreated on Tuesday as worries about an AI bubble continued to set markets on edge, with a pivotal Nvidia (NVDA) earnings report and shutdown-delayed jobs data on the horizon.
Dow Jones Industrial Average futures (YM=F) fell 0.7%, coming off the worst three-day run for the blue-chip benchmark since April. Contracts on the tech-heavy Nasdaq 100 (NQ=F) pulled back 0.6%, while those on the S&P 500 (ES=F) were roughly 0.5% lower on the heels of a bruising session for stocks.
Bitcoin dipped below $90,000 on Tuesday for the first time in seven months, deepening a sell-off that wiped out all of the leading cryptocurrency’s gains for the year. That fueled alarm in Asia — where Japanese stocks booked their worst loss since April — and helped push 10-year Treasury yields (^TNX) lower.
Worries about an AI bubble and the US economy added to the risk-off mood, as markets start to show signs of strain. Investors are now eyeing two key tests of those concerns in coming days.
Chipmaker Nvidia’s third quarter results land on Wednesday, at a moment when investors are rethinking the durability of this year’s AI-fueled market rally. A surge in Big Tech debt issuance is in focus, too, as analysts question huge spending on AI datacenter buildouts.
On Thursday, Wall Street will look to the September jobs report release to help shape expectations for the Federal Reserve’s next policy moves. It’s the first major economic reading since the US shutdown delayed official data releases. Traders have pared rate-cut odds significantly from total conviction a month ago, and are now pricing in a 46% chance of easing.
Meanwhile, a stream of earnings from retailers should offer insight into consumer strength ahead of the holiday season. Home Depot (HD) cut its full-year profit guidance after its earnings missed estimates before the bell, pulling its shares almost 4% lower. Results from major chains Walmart (WMT) and Target (TGT) are also set to hit this week.
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