Dow, S&P 500, Nasdaq sink as worries on AI, US economy hit markets before Nvidia earnings

Cloudflare (NET) shares tumbled 3.6% as the internet infrastructure provider suffered an outage affecting major online platforms such as X and ChatGPT.

Cloudflare’s network serves one-fifth of the world’s internet traffic Reuters. company in question It believed it had fixed the outage, which began early Tuesday morning, around 9:40 a.m. ET. However, Cloudflare said some customers may still be experiencing issues.

Earlier this week, IT provider made news as CEO hit Alphabet owner Google (GOOG) says the tech giant is abusing its monopoly on Search to scrape web content for artificial intelligence models. The issue is something the company has made clear for months.

Despite Tuesday’s decline, Cloudflare shares are up more than 80% for the year.

Major stock indexes lost more than 1% in morning trading on Tuesday after each index fell partially at the market open.

The Nasdaq Composite (^IXIC) led declines, falling nearly 1.9% at one point, while the Dow Jones Industrial Average (^DJI) fell 1.3% and the S&P 500 (^GSPC) fell 1.2%.

Meanwhile, Amazon (AMZN) sent Big Tech shares down more than 3%. Microsoft (MSFT), Tesla (TSLA), Nvidia (NVDA), and Meta (META) are down over 2%.

Intuit (INTU) is the latest company to see its shares rise on news of a deal with OpenAI (OPAI.PVT).

Intuit shares rose 1.5 percent on Tuesday after rising 3.5 percent in premarket trading. announcement An agreement was made with the ChatGPT maker. The gain came as stocks fell broadly in morning trading, with Nasdaq (^IXIC) losing more than 1% shortly after the market open.

Financial management software provider to pay OpenAI more than that 100 million dollars The AI ​​developer’s models will be available for use in Intuit applications, and Intuit applications will be available on ChatGPT.

U.S. stocks fell at the open as investors eyed upcoming employment data that would impact rate cut bets and fears of an AI bubble continued to weigh on tech stocks.

The tech-heavy Nasdaq Composite (^IXIC) fell 0.6%, while the S&P 500 (^GSPC) fell 0.4%. The Dow Jones Industrial Average (^DJI) fell 0.8%, following three days of losses for the blue chip gauge.

Tuesday’s pessimistic mood follows a rocky session in stock markets on Monday.

U.S. private sector employers laid off an average of 2,500 people per week during the four weeks ending November 1. fresh data From ADP Research Tuesday.

This is a smaller loss than the 14,250 private sector jobs lost by employers in the four weeks to October 25.

Investors watched private employment data closely as the longest-ever U.S. government shutdown delayed the release of critical federal economic data.

Looking ahead, Wall Street is looking at: long awaited The Bureau of Labor Statistics’ September employment report on Thursday will influence forecasts for the Fed’s rate cut path.

Home Depot (HD) reported mixed third-quarter earnings on Thursday; The retail giant lowered its adjusted earnings forecast for fiscal 2025 while raising its expectations for sales growth.

Home Depot shares fell more than 3% before the bell on Tuesday.

AP reported:

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Axalta (AXTA) Shares rose 7% in premarket trading Tuesday after Dulux owner AkzoNobel agreed to merge with the paint and chemicals company to create a $25 billion business.

PDD Holdings (PDD) The stock fell 2% before the bell after reporting a 9% increase in revenue. Temu owner’s moves to reduce prices and offer high discounts increased demand in its domestic market.

Amer Sports (LIKE) The stock rose 6% in premarket trading after reporting third-quarter results and raising full-year expectations.

Baidu (BIDU) shares rose 2% on Tuesday after the Chinese search engine beat market expectations for third-quarter revenue. The company has been helped by strong growth in its cloud business amid a rebound in the advertising market.

Reuters reported:

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