[NEW YORK] US stocks ended lower on Tuesday, with the S&P 500 putting in a fourth day of losses as valuation worries hit big technology-related shares and a disappointing forecast pressured Home Depot.
Quarterly results from artificial intelligence and market leader Nvidia are due after the bell on Wednesday.
The US earnings season is near its end, but Nvidia’s results will be closely watched by investors worried about market gains tied to AI exuberance. Nvidia’s shares were lower on the day.
The September US jobs report is set to be released on Thursday after being delayed because of the long government shutdown.
Earlier private market surveys have pointed to a cooling labour market. Data Tuesday showed the number of Americans on jobless benefits surged between mid-September and mid-October.
Shares of Home Depot dropped after the home improvement chain gave a forecast for full-year profit that disappointed and missed quarterly earnings estimates.
Home Depot aside, earnings for this reporting period have been much stronger than expected. Year-over-year earnings growth for the S&P 500 is now at 16.9 per cent, well above the 8.8 per cent estimated at the start of October, according to the most recent LSEG data.
“You’re having this massive sentiment correction during a period where earnings is delivering maybe above bull expectations, and, yet, there’s so much fear circulating in the market,” said Marta Norton, chief investment strategist at retirement and wealth services provider Empower.
The Dow Jones Industrial Average fell 498.56 points, or 1.07 per cent, to 46,091.68, the S&P 500 fell 55.08 points, or 0.83 per cent, to 6,617.33 and the Nasdaq Composite fell 275.23 points, or 1.21 per cent, to 22,432.85.
Concerns over high valuations and dwindling expectations of a December interest rate cut have led to a pullback in US stocks, with the S&P 500 down from its October peak.
The S&P 500 and the Nasdaq both closed below their 50-day moving averages on Monday, an important technical threshold, for the first time since late April. REUTERS
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