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Stocks fell Tuesday as Nvidia led a broader tech decline ahead of the chipmaker’s earnings report.
The Dow Jones Industrials fell 127.5 points to 38,500.49.
The S&P 500 capsized 45.05 points to 4,960.52.
The NASDAQ index dived 520.4 points, or 1.6%, to 15,520.40.
Shares of Nvidia, which is set to report earnings Wednesday after the bell, fell nearly 6%. Although Nvidia is expected to post impressive results, investors have expressed concerns about its sky-high valuation. Shares of Amazon, Microsoft and Meta each lost more than 1%.
Financial stocks were also in view Tuesday following a blockbuster announcement that Capital One Financial agreed to purchase Discover Financial Services in an all-stock deal worth $35.3 billion, which is expected to close in late 2024 or early 2025. Capital One slumped about 1% following the announcement, while Discover jumped 12.5%.
In separate deal news, Walmart announced it will acquire TV maker Vizio for $2.3 billion, or $11.50 a share, leading shares of Vizio to climb higher by about 15%. Walmart shares added more than 4% after the big-box retailer also beat quarterly earnings and revenue expectations, fueled by double-digit growth in the company’s global e-commerce sales.
The moves follow a losing week on Wall Street after economic data raised concerns that the Federal Reserve may not begin cutting interest rates as soon, or by as much, as market participants expected this year.
Prices for the 10-year Treasury regained lost strength, dropping yields to 4.26% from Friday’s 4.29%. Treasury prices and yields move in opposite directions.
Oil prices crawled lower 33 cents to $78.86 U.S. a barrel.
Gold prices climbed $13.80 to $2,037.90.
