Tech Pullback Weighs on Markets
U.S. stocks traded mixed Tuesday as a renewed dip in tech shares interrupted Wall Street’s early-week rally. The S&P 500 fell 0.2%, the Nasdaq Composite dropped 0.7%, while the Dow Jones Industrial Average added 0.5%, supported by non-tech sectors.
The weakness followed news that SoftBank Group had sold its entire $5.83 billion stake in Nvidia (NVDA) to reallocate capital toward other AI ventures. The sale triggered a more than 3% decline in Nvidia’s shares, cooling enthusiasm after a sharp rebound earlier in the week.
Meanwhile, CoreWeave (CRWV) fell 14% after trimming its full-year revenue forecast, citing data center delays despite reporting strong quarterly results. The guidance cut reinforced market concerns that AI infrastructure buildouts may be hitting logistical bottlenecks after months of aggressive expansion.
Shutdown Optimism Offers Support
Offsetting some of the pressure on tech, investors welcomed signs of progress toward ending the record-breaking 41-day U.S. government shutdown. The Senate passed a new funding measure late Monday, sending it to the House of Representatives for final approval.
A potential reopening would allow the release of long-delayed economic data — including key inflation and labor reports — that have been frozen since the shutdown began. Analysts say the restoration of official data will help clarify the Federal Reserve’s rate path heading into December.
Still, even if the government reopens this week, markets may need to wait several days for updates as agencies restart operations.
Labor and Trade Developments Add Complexity
In the absence of government data, private-sector reports continued to fill the void. The latest ADP payrolls report showed that U.S. companies shed an average of 11,250 jobs per week in October, suggesting continued cooling in the labor market.
On the trade front, concerns about the U.S.–China tariff truce resurfaced after reports indicated that Beijing plans to restrict rare-earth mineral exports to U.S. military contractors, even as it maintains shipments to commercial buyers. The move could further complicate supply chains for defense and advanced manufacturing industries.
WSA Take
The market’s enthusiasm for AI took a breather as high-profile names like Nvidia and CoreWeave reminded investors that even strong sectors can stumble amid logistical and valuation challenges.
Still, the broader tone remains cautiously optimistic. Progress on ending the government shutdown could restore transparency to the economic outlook, while investors continue watching how AI-driven growth translates into real earnings.
Read our recent coverage on SoftBank’s $22.5B OpenAI investment and CoreWeave’s contract delay.
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