U.S. Stocks Decline as Tech Earnings and Shutdown Weigh on Markets
U.S. stock markets moved lower on Tuesday as investors reacted to a heavy slate of technology earnings, sharp swings in precious metals, and the ongoing partial government shutdown, which entered its fourth day. Market sentiment shifted throughout the session as early optimism faded.
Nasdaq Leads Market Losses After Early Gains Fade
The tech-focused Nasdaq Composite reversed course after opening higher, closing the day down 1.6%. The broader S&P 500 fell nearly 1%, while the Dow Jones Industrial Average slipped about 0.4%, following a strong rally a day earlier when it surged by roughly 500 points.
Palantir Sparks Optimism, but Big Tech Pressure Returns
Technology stocks initially found support after Palantir reported better-than-expected quarterly results, reinforcing confidence that demand for artificial intelligence remains strong. The company posted a sharp increase in revenue, driven by growing adoption of its AI platform, and issued an upbeat sales outlook.
However, the optimism proved short-lived. Major technology names resumed their recent decline, dragging the sector lower as concerns resurfaced around slowing momentum and heavy spending.
NVIDIA, Amazon, and Microsoft Slide on AI Concerns
Shares of Nvidia dropped more than 3% amid reports of strained relations with OpenAI, as dissatisfaction with the chipmaker’s latest AI processors complicated discussions around a potential massive investment. NVIDIA’s CEO downplayed the situation, but investors remained cautious.
Meanwhile, Amazon and Microsoft also moved lower as the sell-off in software and cloud-related stocks continued, highlighting growing worries about valuations and profitability across the sector.
AMD Earnings in Focus as AI Trade Faces Scrutiny
Attention now turns to AMD’s earnings report after the market close, which investors see as a critical test for the AI investment narrative. The results could shed light on whether fears of excessive spending and an AI-driven bubble are justified.
AMD’s performance will set the tone ahead of upcoming earnings from Amazon and Alphabet, two of the most closely watched reports of the week.
PayPal Tumbles After Earnings Miss and CEO Announcement
Outside of big tech, PayPal shares plunged more than 16% after the company reported earnings and guidance that fell short of expectations. The payments firm also announced HP CEO Enrique Lores as its next chief executive, a move that failed to reassure investors amid a broader exit from software stocks.
Earnings from PepsiCo, Pfizer, and Chipotle were also on investors’ radar during the session.
Disney Names New CEO as Shares Slip
In corporate leadership news, The Walt Disney Company announced that parks division chief Josh D’Amaro will take over as CEO on March 18, replacing longtime leader Bob Iger. Despite the leadership transition, Disney shares edged lower in Tuesday’s trading.
Precious Metals Surge After Extreme Volatility
Elsewhere, precious metals saw dramatic moves. Gold prices jumped more than 6%, positioning the metal for its largest single-day gain since 2008. The rebound followed gold’s steepest daily drop in more than four decades last Friday.
Silver also staged a powerful comeback, surging over 13%, as bargain hunters stepped in after recent losses and volatility remained elevated across commodities markets.
Conclusion
Tuesday’s market action reflected a tense balancing act between strong corporate earnings, lingering economic uncertainty, and volatility across asset classes. While AI optimism remains alive, concerns over valuations, government dysfunction, and uneven earnings results continue to pressure investor confidence. As more major companies report later this week, markets are likely to remain sensitive to both earnings surprises and broader macroeconomic developments.
