Wall Street stocks fell even further on Tuesday as the market was burdened by worries about the IT industry, the resilience of consumer spending, and the likelihood of a Fed rate decrease in December diminished.
The S&P 500 slid 72.34 points (-1.08%) to 6,583.84, the Dow Jones sank 578.28 points (-1.24%) to 45,965.39, and the Nasdaq fell 372.61 points (-1.64%) to 22,267.19.
The fluctuations occurred as worries about artificial intelligence related stocks valuation persisted. Early trading saw a 1.3 percent decline in Nvidia shares and a 0.4 percent decline in Palantir Technologies, two major tech companies.
Microsoft's stock fell 1.7 percent, while Amazon's fell almost 2.0 percent. "Stock prices are being impacted by worries about the tech industry," stated David Morrison of Trade Nation.
Investors must also "price out the prospect of another rate cut" from the Federal Reserve next month, he continued. Many believe that the Fed will hold interest rates unchanged at its upcoming policy meeting in December as a result of recent remarks made by central bank officials.
This would result in "the removal of a strong tailwind for equity markets," according to Morrison. The US retailer Home Depot's earnings, which fell short of analyst estimates prior to the start of trading on Tuesday, are also being processed by traders.
The business, which is one of the indicators of US consumer spending, also reported lower demand for home improvements and lowered its full year projection.
According to Briefing.com's Patrick O'Hare, the firm's performance has raised "worries about a discretionary spending slowdown."
Its stock fell 3.2%. Investors will be keeping an eye on Target and Walmart's financial reports later this week in addition to a report from semiconductor giant Nvidia to further assess consumer health.
