US stocks fell on Tuesday as selling across major technology names weighed on sentiment and bitcoin briefly fell below $90,000, signalling reduced risk appetite among investors. The Dow Jones Industrial Average lost 498 points, or 1.07%, to close at 46,091.74. The S&P 500 slipped 0.83% to 6,617.32, marking its fourth straight decline and its longest losing streak since August. The Nasdaq Composite fell 1.21% to finish at 22,432.85.
At one stage, the Dow was down nearly 700 points, while the S&P 500 and Nasdaq fell as much as 1.5% and 2.1%, respectively.
AI leaders drag markets lower
The pullback was led by further weakness in high-flying artificial intelligence stocks. Nvidia dropped almost 3%, while Amazon fell more than 4% and Microsoft slid nearly 3%. Nvidia has now fallen more than 10% this month ahead of its third-quarter results due after Wednesday’s close, and its performance has become central to the debate over stretched tech valuations and heavy Big Tech debt issuance tied to the AI boom.
Despite a major new AI partnership announced overnight, Anthropic committing to spend $30 billion with Microsoft, while Microsoft and Nvidia will invest billions back into Anthropic, shares in the tech giants remained firmly lower.
Crypto slump adds to nerves
Bitcoin briefly slipped under $90,000 before recovering to just above $92,000. The drop raised additional concerns given the crossover between cryptocurrency investors and major tech shareholders. Analysts warned that further weakness in crypto could amplify any broader market pullback.
Outside of tech, Home Depot shares weakened after an earnings miss and a downgrade to its full-year outlook.
Australian market
Australian shares are set for a softer open, with SPI futures down 15 points, or 0.18%, to 8494.
Local investors will be watching Wednesday’s wage price index, due at 11.30am, with NAB expecting a quarterly rise of 0.8%, consistent with the RBA’s November forecasts. Results are also expected from Nufarm and Webjet, while KMD Brands, Medibank Private and Nuix will hold annual meetings.
