Stocks Slide as AI Trade Cools Ahead of Nvidia Q3 Results
U.S. stocks opened lower as “AI trade” momentum cooled and investors awaited key economic data and Nvidia Q3 results. The S&P 500 fell 0.2% and the Nasdaq Composite dropped 0.4%, with the VIX volatility index rising modestly. Anticipation around Nvidia Q3 results weighed on tech shares after reports of large fund position exits, even as the firm’s AI outlook remains broadly positive. Home Depot and Walmart also prepare to report Q3 earnings this week, while Alphabet shares ticked up after Berkshire Hathaway took a new stake. On the economic front, the Empire State Manufacturing Index posted a stronger-than-expected reading, and U.S. construction spending exceeded forecasts. Treasury yields showed mixed moves, with the 10-year yield holding near 4.4%. Overall, heightened caution ahead of major earnings releases and delayed data fueled market volatility.
Bearish
The article highlights a pullback in “AI trade” momentum alongside caution ahead of Nvidia Q3 results and key economic data releases. Historically, such environments—characterized by rising volatility and earnings uncertainty—tend to trigger risk-off sentiment across both equity and crypto markets. For instance, during past earnings seasons, notably in Q3 2021, underwhelming tech earnings catalyzed a sell-off in tech stocks and a 5–10% drop in major cryptocurrencies. In the short term, uncertainty around Nvidia Q3 results and delayed economic reports is likely to dampen crypto buying interest and provoke further selling pressure. Over the longer term, if Nvidia delivers strong results and economic indicators stabilize, risk appetite could recover, potentially offsetting recent losses. However, until clarity emerges, the market stance remains defensive, suggesting a bearish impact on crypto market stability and trading activity.