Global stock markets fell on Tuesday amid concerns over high‑tech valuations, especially as Nvidia’s earnings report approached. Nvidia’s shares slipped more than 3 % ahead of the quarterly release, which investors hope will shed light on the health of the industry. The market is questioning whether the massive investments in artificial intelligence will generate substantial returns after this year’s record rally.
The U.S. Federal Reserve’s possible interest‑rate decision next month also weighed on sentiment. Bitcoin briefly dropped below $90,000 for the first time in seven months before recovering, as traders increasingly expect the Fed to hold rates steady. A delayed U.S. jobs report, postponed because of the government shutdown, is set for Thursday and will be scrutinized for clues about a potential rate cut. Retail earnings from Home Depot, Target and Walmart will further gauge consumer sentiment.
In Asia, Tokyo’s market tumbled while Prime Minister Sanae Takaichi prepared to unveil an economic stimulus package that could raise borrowing and push government‑bond yields higher. The yen fell to its weakest level since January, and expectations of further rate hikes have faded. Market analysts view Japan’s economic situation as a major concern, fearing the government is mishandling the economy. Fawad Razaqzada of StoneX noted that even traditionally safe commodities such as gold and copper were caught up in the sell‑off.
The global decline was reflected in major indexes. At 14:50 GMT, the Dow Jones Industrial Average was down 0.9 % at 46,169.20, the S&P 500 fell 0.8 % to 6,621.79, and the Nasdaq Composite dropped 1.2 % to 22,432.39. In Europe, the FTSE 100, CAC 40 and DAX fell 1.3 %, 1.1 % and 1.5 % respectively, while Tokyo’s Nikkei 225 closed 3.2 % lower at 48,702.98.
The broad market slide underscores the importance of upcoming earnings reports and economic data for any potential turnaround. Developments in Japan and the Fed’s interest‑rate decision will continue to shape market direction in the coming days, as investors search for clues about the tech sector’s health and the overall economic outlook.
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