Stocks And Bitcoin Slide As Market Anxiety Builds Ahead Of Nvidia Earnings

Wall Street began the week with a broad sell-off as investor anxiety grew ahead of two major market events: Nvidia’s upcoming earnings report and the delayed September jobs numbers. Stocks and bitcoin both tumbled Monday, reflecting a risk-off mood across markets.

The Dow fell 557 points, or 1.18 percent, while the S&P 500 dropped 0.92 percent. The Nasdaq Composite slid 0.84 percent. Wall Street’s fear gauge, the VIX, surged 13 percent, and CNN’s Fear and Greed Index slipped into “extreme fear,” hitting its lowest level since early April.

Investors are watching closely as Nvidia, a key driver of the artificial intelligence boom, prepares to report earnings on Wednesday. On Thursday, the September jobs report — postponed due to the government shutdown — will finally be released. Both could influence expectations around economic growth, tech spending, and Federal Reserve decisions.

Tech stocks have been under pressure in recent weeks as concerns grow about steep valuations and soaring investment costs among large tech firms. The Nasdaq is down nearly 5.5 percent since hitting a record high in late October. Analysts say markets are also attempting to determine whether the AI sector is resting on a stable foundation, and whether the Federal Reserve will pause its interest rate-cutting cycle in December.

Bitcoin also slid Monday, trading just below 92,000 dollars and erasing its gains for the year. The cryptocurrency has dropped more than 26 percent in six weeks after reaching a record high above 126,000 dollars in early October. Crypto-related stocks followed the decline, with Coinbase shares falling 7 percent.

The S&P 500 and Nasdaq dipped below their 50-day moving averages, a threshold often viewed as key market support. Analysts say the broader market may be entering a corrective phase after a strong six-month rally.

Investors are now focused on Nvidia’s performance, given the company’s outsized influence on the S&P 500, where it represents roughly eight percent of total market value. Nvidia shares fell 1.83 percent Monday, dragging the broader market lower.

Meanwhile, expectations for a December rate cut have faded sharply. Traders now see a 45 percent chance the Fed will lower rates next month, down from 94 percent one month ago. Some analysts warn that persistent inflation concerns may keep the Fed cautious.

Markets have seen increased rotation this month as investors shift out of high-flying tech stocks and into more affordable sectors. Analysts say this recalibration may help stabilize the current bull market before it attempts to move higher.

Credit: CNN Newsource

Explore: NBCPalmSprings.com, where we are connecting the Valley.