FX.co ★ US Stocks Pare Losses

On Tuesday, U.S. stocks trimmed some earlier losses but ended the day in negative territory, with the S&P 500 and Dow Jones extending their downturn for the fourth consecutive session, decreasing by approximately 0.2% and 0.6% respectively. The Nasdaq also experienced a decline, falling nearly 0.6%, as markets adjusted positions in the AI sector ahead of Nvidia's anticipated earnings report. In this context, technology stock valuations were reevaluated amid significant capital expenditure (capex) driven debt issuance in recent weeks. Major technology companies led the decline, with Nvidia dropping 3%, Microsoft down 3.3%, Amazon decreasing 3.6%, and Meta falling by 2.5%. Meanwhile, Home Depot saw a significant 4% drop after reducing its profit forecast for the full year. Additionally, risk sentiment was dampened when Bitcoin briefly fell below 90K. Investors were cautious as they braced for postponed macroeconomic data releases following a government shutdown, remaining watchful that stronger labor statistics might undermine the rationale for Federal Reserve easing. Recent data presented a mixed scenario, with initial jobless claims at 232,000, continuing claims rising to their highest level since August at 1.957 million, and the ADP report indicating small net payroll losses in early November.