U.S. stock markets pulled back on Tuesday as declining technology shares dragged major indexes further away from their recent record highs, while investors closely monitored rising global uncertainties and awaited Nvidia’s highly anticipated earnings report.
The S&P 500 fell 0.5 percent, marking its third consecutive decline after recently reaching an all-time high. The Dow Jones Industrial Average dropped nearly 400 points, or 0.8 percent, while the Nasdaq Composite slipped 0.6 percent in early trading.
Technology stocks, which have fueled much of Wall Street’s rally through enthusiasm surrounding artificial intelligence, showed signs of slowing after months of rapid gains. Analysts have increasingly warned that some tech companies may have become overvalued amid the AI investment boom.
Investor attention is now focused on Nvidia, the semiconductor giant at the center of the AI surge, which is scheduled to release its latest quarterly earnings on Wednesday. Nvidia has consistently exceeded Wall Street expectations in recent quarters and delivered strong growth forecasts that helped drive broader market optimism. Shares of Nvidia dipped 0.7 percent ahead of the report.
Global markets also showed mixed performance. South Korea’s Kospi index plunged 3.3 percent as tech stocks weakened across Asia, while Germany’s DAX index gained one percent, making it one of the strongest-performing markets of the day.
Market uncertainty continues to be fueled by geopolitical tensions and rising bond yields. Investors remain concerned about the ongoing Iran conflict and the potential disruption of oil shipments through the Strait of Hormuz, one of the world’s most critical energy trade routes.
In the bond market, Treasury yields climbed again, with the 10-year Treasury yield rising to 4.66 percent from 4.61 percent a day earlier. Yields have risen sharply since the Iran conflict began, adding pressure to global borrowing costs and financial markets.
Oil prices, meanwhile, eased slightly after weeks of volatile swings. Brent crude fell 0.7 percent to $111.39 per barrel, although prices remain significantly elevated compared to pre-conflict levels around $70 per barrel.
Higher energy costs are also affecting consumers across the United States. According to AAA, the average price of gasoline rose to $4.53 per gallon, approximately 43 percent higher than the same period last year.
Among notable corporate movers, Akamai Technologies fell 3.9 percent after announcing plans to raise $2.6 billion through a convertible note offering. Home Depot shares also declined 2.2 percent despite posting quarterly earnings that slightly beat analyst forecasts. The retailer cited continued consumer uncertainty and ongoing housing affordability challenges impacting demand.
Despite the recent market pullback, many major U.S. corporations have continued reporting stronger-than-expected profits, supported by resilient consumer spending even amid inflationary pressures and rising fuel costs.