Markets Dip as Attention Turns to Nvidia Earnings and Labor Data
US stocks slipped Monday as investors weighed fading expectations for a December rate cut and looked ahead to a pivotal week for tech and macro data.
The Nasdaq Composite fell 0.4%, the S&P 500 declined 0.4%, and the Dow also edged lower. The cautious mood reflects growing uncertainty around how fast the Federal Reserve will ease policy — and whether upcoming data will support a cut.
Wednesday’s earnings report from Nvidia (NVDA) is poised to be the defining market catalyst of the week. With Big Tech valuations under pressure and AI spending reaching staggering levels, Nvidia’s results will test whether the AI trade remains a durable earnings engine or if volatility in the sector is here to stay.
The company’s stock dipped after a filing revealed that Thiel Macro, run by Palantir co-founder Peter Thiel, exited its Nvidia position.
Buffett’s Alphabet Bet Gives Markets a Brief Lift
One bright spot in Monday’s trading came from Berkshire Hathaway, which disclosed a nearly $5 billion stake in Alphabet. The position — likely one of the final major moves under Warren Buffett’s leadership — marks a rare vote of confidence in a megacap tech name.
Alphabet shares surged roughly 6% following the disclosure, helping offset broader weakness across the tech sector.
Jobs Report Delayed — But Set for Release Thursday
Markets are eager to receive the long-delayed September jobs report on Thursday, which should provide the first official read on the labor market since the shutdown.
A full return to normal economic data remains uncertain, and Fed officials have adopted a noticeably more cautious tone in recent weeks. Rate-cut odds have fallen to 45%, down sharply from 62% a week earlier, reflecting doubts about the path forward.
Earnings Spotlight: Retail Takes Center Stage
This week is heavy on consumer-sector earnings, offering another look at household resilience heading into year-end. Key reports include:
- Walmart (WMT)
- Home Depot (HD)
- Target (TGT)
- Lowe’s (LOW)
- Gap (GPS)
Their results will help determine whether consumer spending remains sturdy or is starting to crack under inflation and sentiment pressures.
Bitcoin Extends Slide as Risk Appetite Fades
Bitcoin continues to slump, dropping from its October record above $126,000 to lows near $92,500. The token has erased its year-to-date gains, despite favorable regulatory signals earlier in the year.
The sharp drawdown underscores a broader risk-off shift across markets as investors grow more skeptical about overstretched valuations and uncertain monetary policy.
WSA Take
Markets are entering a decisive stretch. Nvidia’s earnings and Thursday’s delayed jobs report will shape the next phase of the AI trade, the interest-rate debate, and risk appetite across equities. With sentiment fragile and data visibility still incomplete, volatility remains the base case.
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