US market close: Stocks fall as tech slumps and bitcoin drops below $90,000; Dow sheds nearly 500 points, S&P logs longest losing streak since August
Technology stock printing
The main reason for the decline was the decline of major technology stocks. Nvidia fell more than 1%, Amazon fell 3% and Microsoft fell 2%. Sam Stovall, chief investment strategist at CFRA, said the S&P 500 could see an 8% or 9% decline. “If we get the kind of earnings our analysts expect for Nvidia and employment data that is weak but not a sign of a recession, this deal could close sooner,” he said.
Nvidia’s earnings concerns
Nvidia is down 9% this month ahead of third-quarter results due after the market close on Wednesday. Nvidia’s results are a big deal as there are growing concerns about high tech valuations, AI fundamentals and the explosion of Big Tech debt offerings.
“If the top tier company in the top industry says very optimistic things about the future while also reporting better-than-expected earnings, revenue and profit margins, I think that would go a long way in calming investors’ nerves,” Stovall said, according to CNBC’s report.
ALSO READ: Will NVDA shares crash or rise after earnings? Nvidia poised for record $320 billion move as options forecast 7% swing
He added that investors want to know when companies will make real money from all the new AI spending, saying “that’s something that’s not going to happen this quarter or next quarter.”
Anthropic-microsoft-nvidia agreement
Anthropic announced a $30 billion spending deal with Microsoft, and Microsoft and Nvidia will invest billions of dollars in Anthropic, but this big AI deal hasn’t boosted tech stocks like such deals usually do. Stovall said the market is “digesting the earnings” and investors are now questioning the overall environment.ALSO READ: Anthropic AI deal announced: Microsoft and Nvidia’s bet on Claude diversifies beyond OpenAI – here’s the investment breakdown
Bitcoin decline
Bitcoin dropped below $90,000 and later rebounded to just above $91,000. The decline in Bitcoin has raised fears of further share sales, as many tech investors also own cryptocurrencies.
ALSO READ: Bitcoin price nears $94,000 today after BTC USD falls to seven-month low $90,000
home depot earnings
Home Depot shares fell after the company missed earnings and lowered its full-year outlook.
ALSO READ: Home Depot shares fall as third-quarter earnings miss expectations
Stocks that could move based on Nvidia results
Nvidia reports on Wednesday. According to LSEG consensus, analysts expect earnings of $1.25 per share (up 54% year-over-year) and revenue of $55 billion (up 57% year-over-year). If Nvidia reports strong numbers, its shares could rise, and so could highly connected stocks like Palantir, TSMC, and Super Micro Computer.
Meta wins FTC antitrust case
Meta wins antitrust lawsuit against the Federal Trade Commission. Judge James Boasberg of the Washington D.C. court said the FTC failed to prove that Meta currently has monopoly power. The case focused on Meta’s acquisitions of Instagram and WhatsApp, which it filed five years ago.
“Whether Meta has or has not had monopoly power in the past, the agency needs to show that it continues to hold that power now,” Boasberg wrote. “Today’s court decision finds that the FTC did not do this,” he added, as noted in the CNBC report.
S&P 500 shares at 52-week low
18 S&P 500 stocks hit new 52-week lows on Tuesday. Solstice Advanced Materials has been the only stock to hit all-time lows since its October 2025 spin-off from Honeywell. Other stocks hitting 52-week lows include:
- Trade Desk (lowest since November 2022)
- Clorox (lowest level since December 2014)
- Molina Healthcare (lowest since April 2020)
- Automatic Data Processing (lowest level since July 2024)
- Carrier Global (lowest since November 2023)
- Old Dominion Freight Line (lowest since November 2022)
- Adobe (lowest since March 2023)
- GoDaddy (lowest since May 2024)
- Motorola Solutions (lowest since June 2024)
Stocks reach new highs
Five S&P 500 stocks reached all-time highs and one set a new 52-week high.
These names included:
- Eli Lilly (all-time high since initial shares in 1952)
- Medtronic (highest since May 2022)
- Expeditors International (all-time high since IPO in 1984)
- Ventas (all-time high since 1998 spinoff)
- Welltower (all-time high since inception in 1985)
- American Electric Power (all-time highs go back to 1972)
Small caps buck the trend
The Russell 2000 rose 0.8% while the S&P 500 fell 0.2%. But the Russell 2000 was still down more than 1% in the week after Monday’s decline.
Big movers at noon
Klarna fell almost 10% after its first earnings report since its IPO showed a loss of $83 million, compared with a profit of $13 million last year. As noted in CNBC’s report, the strategy gained 7% as Bitcoin rebounded from earlier lows. Cloudflare fell nearly 3% after an outage affected major platforms like X and ChatGPT. Cogent Communications rose 7% after its board restarted a $100 million share buyback program.
FAQ
Q1. Why did US stock markets fall on Tuesday?
U.S. stocks fell as tech stocks fell, Nvidia worried investors and Bitcoin briefly fell below $90,000.
Q2. What caused the Dow to lose nearly 500 points?
The Dow fell due to a tech selloff, weak earnings from Home Depot and investors’ general caution in the market.
