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postUS stock futures trimmed losses on Tuesday as the bitcoin (BTC-USD) slump that set markets on edge started to ease, with a pivotal Nvidia (NVDA) earnings report and shutdown-delayed jobs data on the horizon.
S&P 500 futures (ES=F) were 0.2% lower, recovering ground after dropping 0.8% in the very early hours. Contracts on the Dow Jones Industrial Average futures (YM=F) and the tech-heavy Nasdaq 100 (NQ=F) also came off premarket lows, down about 0.4% and 0.2%, respectively, on the heels of sharp closing losses for Wall Street stocks.
Bitcoin dipped below $90,000 on Tuesday for the first time in seven months, deepening a sell-off that wiped out all of the leading cryptocurrency’s gains for the year. That fueled alarm in Asia — where Japanese stocks booked their worst loss since April — and helped push 10-year Treasury yields (^TNX) lower.
The risk-off mood now appears to be lifting somewhat, as US stocks reverse course and bitcoin rises above $91,000 — though worries about the AI boom and the US economy are still in play. The Dow tumbled 1.2% in a bruising session for equities on Monday, logging its worst three-day run since April’s “Liberation Day” slide as selling pressure intensified across Big Tech.
But the market still faces two key tests of those concerns in coming days.
Chipmaker Nvidia’s third quarter results land on Wednesday, at a moment when investors are rethinking the durability of this year’s AI-fueled market rally. A surge in Big Tech debt issuance is in focus, too, as analysts question huge spending on AI datacenter buildouts.
And on Thursday, Wall Street will look to the September jobs report release to help shape expectations for the Federal Reserve’s next policy moves. It’s the first major economic reading since the US shutdown delayed official data releases, adding uncertainty. Traders have pared rate-cut odds significantly from total conviction a month ago, and are now pricing in a 46% chance of easing.
Meanwhile, a stream of earnings from retailers should offer insight into consumer strength ahead of the holiday season. Home Depot (HD) cut its full-year profit guidance after its earnings missed estimates before the bell, pulling its shares almost 2% lower. Results from major chains Walmart (WMT) and Target (TGT) are also set to hit this week.
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Home Depot cuts forecast due to US consumer weakness
Home Depot’s (HD) reported mixed third quarter earnings on Thursday, with the retail giant lowering its fiscal 2025 adjusted earnings forcast but raising its expectations for sales growth.
Home Depot stock fell more than 2% before the bell on Tuesday.
The AP reports:
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Premarket trending tickers: Axalta, PDD and Amer Sports
Axalta (AXTA) stock jumped 7% in premarket trading on Tuesday after Dulux owner AkzoNobel agreed to combine with the paint and chemicals company to create a $25 billion business.
PDD Holdings (PDD) stock fell 2% before the bell after reporting a 9% jump in revenue. The Temu-owner had made moves to slash prices and offer steep discounts were bolstering demand in its home market.
Amer Sports (AS) stock rose 6% in premarket trading after reporting third quarter results and raising its full-year guidance.
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Fear spreads across markets as crypto sell-off raises alarms
Bloomberg reports:
Bitcoin’s (BTC-USD) slide below $90,000 worsened a slump in Asia’s financial markets Tuesday, fueling alarm that leveraged investors would set off a negative spiral of selling pressure.
The cryptocurrency fell as much as 2.8%, the latest drop in a slide that has wiped out all of its gains for the year. That ramped up pressure across Asian stock markets: The MSCI Asia Pacific Index tumbled more than 2%, its worst performance in a month, and almost every market in the region lost ground.
Treasuries rose across the curve, with yields on 10-year notes (^TNX) falling four basis points. Haven currencies including the yen (JPY=X) and the Swiss franc (CHF=X) strengthened while the risk-sensitive Australian dollar (AUD=X) declined. The Bloomberg Asia Dollar Index dropped to the lowest since May. …
“Bitcoin’s extended selloff has definitely amplified the market’s risk alarm, reinforcing the sense that something deeper may be shifting under the surface,” said Hebe Chen, an analyst at Vantage Markets in Melbourne.
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Chinese search engine Baidu’s Q3 revenue beats expectations
Baidu (BIDU) stock rose 2% before the bell on Tuesday after the Chinese search engine beat market expectations for its third quarter revenue. The company was helped by strong growth in its cloud business amid a recovering ad market.
Reuters reports:
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Asian stock markets fall following US tech drop
AP Finance reports:
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