US stock market extended their losses for a third consecutive session on Monday, reflecting growing investor caution ahead of two major market-moving events. The Dow Jones Industrial Average fell over 550 points, while the S&P 500 and Nasdaq Composite both declined significantly. This persistent sell-off underscores mounting concerns about delayed interest rate cuts and questions about whether the recent tech rally can maintain its momentum.
All Eyes on Nvidia’s High-Stakes Earnings Report
The market’s primary focus remains firmly on Nvidia’s upcoming earnings report, scheduled for Wednesday. This event carries exceptional weight given current doubts about soaring tech valuations and the sustainability of massive AI-related investments. Consequently, the chipmaker’s results and future guidance will serve as a crucial test for Wall Street’s confidence. The stakes were highlighted by a recent disclosure. Thiel Macro has sold its entire stake in the AI giant, contributing to Monday’s nearly 2% drop in Nvidia’s share price.
Bright Spots and Broader Economic Concerns
Despite the general market pessimism, several positive developments emerged. Most notably, Berkshire Hathaway revealed a substantial $5 billion investment in Alphabet. Providing a significant vote of confidence in the Google parent company. This rare tech bet from Warren Buffett’s conglomerate boosted Alphabet’s stock by approximately 3%. Meanwhile, investors are anxiously awaiting Thursday’s delayed September jobs report, which will offer critical insights into labor market strength. Recent cautious commentary from Federal Reserve officials has significantly reduced expectations for a November rate cut, with traders now pricing in just a 45% probability compared to 62% last week.
Stock market: Retail Earnings and Cryptocurrency Volatility
This week also brings important earnings reports from major retailers including Walmart, Home Depot, and Target. These results will provide valuable information about consumer spending resilience amid ongoing economic uncertainty. Additionally, the cryptocurrency market is experiencing substantial volatility, with Bitcoin’s price falling from its recent record high above $126,000 to below $92,000. This decline represents a significant health check for the broader digital asset sector as investors reassess risk appetite across markets.
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