The U.S. stock market edged lower on Monday as rising Nvidia stock pressure outweighed gains seen elsewhere in the tech sector. The S&P 500 slipped 0.1% in early trading, drifting further from its recent record. The Dow Jones Industrial Average fell by 11 points, while the Nasdaq composite dipped 0.1%.
These modest moves masked a deeper level of turmoil beneath the surface as investors braced for a critical week of earnings and long-awaited economic data. Shares of Nvidia (NASDAQ:NVDA) continued their decline ahead of Wednesday’s profit report, with traders questioning whether valuations tied to AI leaders have stretched too far. Meanwhile, Treasury yields eased slightly as markets awaited Thursday’s delayed September jobs report—data that could influence the Federal Reserve’s next rate decision.
Alphabet Rises While Nvidia Faces Profit-Test Moment
Trading opened quietly mixed as investors focused on Nvidia’s upcoming results and the first government employment update in more than six weeks. S&P 500 and Dow futures slipped less than 0.1%, while Nasdaq futures rose slightly.
Alphabet (NASDAQ:GOOG) added early strength to the market, jumping more than 4% after Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A) disclosed a new stake worth over $4 billion. The move added optimism among tech investors, but it wasn’t enough to counterbalance growing Nvidia stock pressure.
Nvidia, which briefly surpassed a $5 trillion market cap earlier this year, has been at the center of the artificial intelligence boom. However, its shares have retreated in recent weeks as analysts warn that U.S. tech stocks—especially those tied to AI—may be overvalued.
The stakes for Wednesday’s earnings announcement are unusually high; Nvidia must demonstrate strong profit growth to silence critics and justify lofty expectations built into its share price.
Retail Giants and Jobs Data Take Center Stage
Beyond Nvidia, the week’s spotlight includes major retail earnings that may offer rare insight into U.S. consumer health. Home Depot (NYSE:HD), Target (NYSE:TGT), and Walmart (NYSE:WMT) are all set to report.
With government economic data delayed due to a 43-day federal shutdown, markets have been largely flying blind on inflation, job creation, and GDP growth since late summer. Thursday’s Labor Department jobs update will be the first major data release in over a month and a half—potentially shaping the Fed’s next steps on interest rates.
Global Markets React to Geopolitical and Economic Tensions
European markets were broadly lower at midday. Germany’s DAX dropped 0.6%, France’s CAC 40 slipped 0.5%, and Britain’s FTSE 100 dipped 0.2%.
In Asia, Japan’s Nikkei 225 fell 0.1% after new data showed the country’s economy contracted at a 1.8% annualized rate for Q3. The Japanese yen slipped further against the U.S. dollar, reflecting ongoing currency weakness.
Chinese markets also declined. Hong Kong’s Hang Seng shed 0.7%, while the Shanghai Composite slid 0.5%. Investor sentiment in East Asia soured as political tensions rose. Relations between China and Japan deteriorated following remarks by Japanese Prime Minister Sanae Takaichi about the possibility of responding militarily should China move on Taiwan—prompting strong pushback from Beijing.
“China’s escalation against Japan over Prime Minister Takaichi’s Taiwan remarks has moved from a diplomatic irritant to a consequential macro input,” noted Stephen Innes of SPI Asset Management, signaling that markets are now recalibrating regional risk.
South Korea’s Kospi bucked the trend, rising 1.9% as tech stocks rallied. SK Hynix surged 8.2% and Samsung Electronics climbed 3.5% after both firms confirmed AI collaboration plans with Nvidia—despite increasing Nvidia stock pressure elsewhere.
Energy Prices Stay Stable Amid Market Uncertainty
In commodities, U.S. benchmark crude inched up 14 cents to $60.23 per barrel, while global benchmark Brent crude added 13 cents to reach $64.52.
With geopolitical tensions rising, corporate earnings on deck, and Nvidia stock pressure weighing on sentiment, investors face a pivotal week that could determine the market’s next direction.
Featured Image – Freepik
