FX.co ★ US Stocks Inch Lower

U.S. stock indices experienced little movement on Tuesday as new concerns emerged about the labor market, coupled with ongoing doubts about whether current AI valuations are justified by underlying fundamentals. Both the S&P 500 and the Nasdaq 100 saw slight declines, while the Dow remained nearly unchanged. Recent data from ADP revealed that, on average, 11,250 jobs were lost each week throughout most of October, reinforcing a wave of negative labor reports from other private sources. Concurrently, stocks linked to significant AI capital expenditures faced continued pressure amid concerns of overvaluation following SoftBank's sale of its entire $5.8 billion stake in Nvidia to finance other AI projects. Nvidia itself saw a 2% decline, with Oracle, Meta, and Tesla each dropping over 1.5%. Additionally, CoreWeave suffered a 10% decrease after issuing disappointing guidance. Despite this, the overall market showed mixed results as cautious optimism persisted about a potential resolution to the U.S. government shutdown, with the House of Representatives set to vote on a temporary funding bill that has already passed the Senate.