US stock market down today: U.S. stocks fell sharply Tuesday as the Dow Jones Industrial Average dropped 584 points, or 1.3%, and the S&P 500 slid 1.1%, marking its fourth straight losing day—the longest streak since August. The Nasdaq Composite, loaded with tech giants, fell 1.7%, dragged down by a mix of profit-taking, high AI stock valuations, and investor caution over Big Tech debt.
Nvidia, the AI chip leader, dropped 2%, continuing a 10% monthly slide ahead of its third-quarter earnings report due Wednesday. Amazon and Microsoft also lost ground despite the announcement of a major AI partnership. AI startup Anthropic said it will spend $30 billion with Microsoft, while Microsoft and Nvidia will invest billions in return. Yet, Nvidia and Microsoft shares remained in the red, showing that hype alone could not lift tech stocks.
Alphabet CEO Sundar Pichai told the BBC that part of the AI boom is “irrational”, warning that no company would be immune if the bubble bursts. Investors are now questioning whether the AI-driven rally is sustainable or if pricey valuations are justified.
Bitcoin briefly dipped below $90,000 on Tuesday, down from its early October record of $126,000. Many tech investors hold cryptocurrency alongside equities, raising concerns about broader market risks. At press time, bitcoin was trading just above $91,000, signaling a retreat in risk appetite across markets.
Outside of tech, Home Depot shares fell after the company reported an earnings miss and cut its full-year outlook. Weak retail data and cautious consumer spending are adding pressure to the broader market, with the Nasdaq on pace to snap a seven-month win streak and the S&P 500 down 2.5% in November following a six-month rally. Analysts note a sharp shift in market sentiment from rewarding AI investment to skepticism about future returns.
Investor anxiety is also rising over the Federal Reserve’s next moves. Fed funds futures show roughly a 50% chance of a rate cut in December, down from over 90% a month ago. Key economic releases, including the Fed’s October meeting minutes and September nonfarm payrolls, are scheduled for Wednesday and Thursday. Traders are watching closely for any signs that could affect interest rates and equity valuations.According to Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions, the market is undergoing a “sharp de-risking” as AI expectations cool and crowded positions are unwound. Investors are recalibrating risk as both tech and crypto see volatility, leaving Wall Street cautious.In short, Dow drops 500 points, S&P 500 sinks four days straight, Nasdaq tech giants tumble, and Bitcoin retreats below $90K. Market watchers say the AI hype-driven rally may be hitting a turning point, while concerns over Fed policy, tech valuations, and cryptocurrency declines are driving a more cautious trading mood.
U.S. Stocks Slide Amid Tech Weakness and AI Valuation Concerns
The Dow Jones Industrial Average dropped 584 points, or 1.3%, while the S&P 500 fell 1.1%, marking its fourth consecutive losing session—the longest streak since August. The Nasdaq Composite, heavily weighted with tech companies, lost 1.7%.
Investors are increasingly cautious as the AI-driven rally faces scrutiny, with doubts over whether tech valuations remain justified. Rising concerns about Big Tech debt issuance and the sustainability of AI growth have added to the market’s unease.
Nvidia, Microsoft, and Amazon Under Pressure
AI chip leader Nvidia fell 2% on the day, continuing its monthly decline of 10% ahead of its third-quarter earnings report due after Wednesday’s market close. Fellow “Magnificent Seven” members Amazon and Microsoft also saw losses.
A major AI partnership announced Tuesday failed to boost sentiment. AI startup Anthropic revealed it will spend $30 billion in collaboration with Microsoft, with Microsoft and Nvidia investing billions in return. Despite the announcement, shares of Nvidia and Microsoft remained in the red.
Alphabet CEO Sundar Pichai told the BBC that part of the AI boom has “irrationality” and warned that no company would be immune if the bubble bursts.
Bitcoin Briefly Dips Below $90,000
Bitcoin continued its slide on Tuesday, briefly falling below $90,000. The cryptocurrency is down from its early October record high of $126,000. Many tech investors hold cryptocurrency alongside equities, and the bitcoin decline has raised concerns about broader market risks. At press time, bitcoin was trading just above $91,000.
Home Depot Earnings Miss Adds to Market Pressure
Outside the technology sector, Home Depot shares fell after the company reported an earnings miss and cut its full-year outlook. Weak retail and consumer data are adding to investor caution in November.
The Nasdaq is on pace to end a seven-month win streak, while the S&P 500 is down 2.5% this month following a six-month rally. Analysts note that market sentiment has shifted sharply from rewarding AI investment to skepticism about future returns.
Fed Rate Cuts and Economic Outlook in Focus
Investor anxiety is further fueled by uncertainty over the Federal Reserve’s next moves. Fed funds futures indicate a roughly 50% chance of a rate cut in December, down from over 90% a month ago. The Fed’s October meeting minutes and September nonfarm payroll data, scheduled for release Wednesday and Thursday, will be closely watched for signs on the economic outlook and rate policy.
According to Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions, the market is undergoing a “sharp de-risking” as AI expectations shift and crowded positions are unwound.