U.S. stocks are facing a potential third day of losses as investors show uncertainty about interest rate cuts. The focus is now on Nvidia’s upcoming earnings and the delayed jobs report for September. The tech-heavy Nasdaq Composite fell by 0.9%, alongside a similar drop in both the S&P 500 and the Dow Jones Industrial Average.
The market is keenly awaiting Nvidia’s earnings report on Wednesday. This event will provide a crucial test for Big Tech’s future, especially amid concerns about high valuations and significant investments in AI technology. Nvidia’s results could either boost investor confidence or deepen doubts about the tech sector.
In some positive news, Berkshire Hathaway revealed it had acquired nearly $5 billion in Alphabet shares, causing a nice uptick in Alphabet’s stock, which rose about 6% early in trading. This shift signals a rare venture into tech for Berkshire, traditionally cautious in that area. However, shares of Nvidia took a hit when it was disclosed that Thiel Macro, a hedge fund linked to Peter Thiel, sold its stake in the chipmaker.
The delayed jobs report, set for release Thursday, will give a clearer view of the U.S. labor market. The Federal Reserve’s recent cautious tone has led to uncertainty about future rate cuts, with traders now estimating a 45% chance of a cut next month, down from 62% the previous week.
Retailers will also come into focus as key players like Walmart and Home Depot release earnings this week. This will provide insights into consumer spending, which is essential for assessing the broader economic landscape.
Meanwhile, Bitcoin has been experiencing fluctuations of its own. After peaking earlier this month, Bitcoin’s price has decreased significantly, signaling a shift in investor sentiment towards risk aversion. This mirrors the greater market environment where stocks and cryptocurrencies are both feeling the pressure.
In a recent trend, more than half of U.S. homes have lost value in the past year. According to CoreLogic, 55% of homes experienced price decreases, indicating a challenging housing market. Historical comparisons show this level of decline is similar to patterns seen during the previous economic downturns, making it vital for potential home buyers and sellers to stay informed.
In sum, as tech earnings come into play and economic data unfolds, both investors and analysts will be closely monitoring the responses from the market.
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Nvidia, Nasdaq Composite, jobs report, Peter Thiel, investors
