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Informist, Wednesday, Nov. 19, 2025                                      Tel +91 (22) 6985-4000

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Equity Alert: US indices end lower Tue as tech-related stocks fall again

 

MUMBAI--0733 IST--Equity indices in the US closed lower Tuesday as technology-related stocks continued to face selling pressure amid concerns about overvaluation of artificial-intelligence-related companies. The S&P 500 and the Dow Jones Industrial Average indices fell for the fourth consecutive session. Traders await the September quarter earnings of technology industry bellwether Nvidia Corp. to provide cues on global demand for AI.

 

While traders expect the largest company in the broad-market index to beat Wall Street expectations when it releases its earnings later in the day, there are concerns that AI-related optimism in the recent past has inflated the valuation of Nvidia. AI company Anthropic Tuesday said it would invest $30 billion in Microsoft and, in turn, receive investments from Microsoft and Nvidia. Unlike the recent past when AI partnership-related news would drive shares of the "magnificent seven" higher, stocks of Nvidia and Microsoft still ended 3% lower each on the Nasdaq Composite index. Shares of Amazon.com slumped more than 4% and Tesla fell nearly 2%. 

 

"We could see an 8% (or) 9?cline (in S&P 500) when all is said done," Sam Stovall, CFRA's chief investment strategist, was quoted as saying by CNBC. "It might even end up concluding sooner if we get the kind of earnings that our analyst is expecting for Nvidia, and if we get employment data that is weak but not pointing to recession."

 

Shares of Home Depot fell 6?ter the home improvement chain gave a disappointing forecast for full-year profit, missing quarterly earnings estimates. However, not including Home Depot, earnings for the September quarter have been stronger than expected. Year-on-year earnings growth for the S&P 500 is now at 16.9%, well above the 8.8% estimated at the start of October, Reuters reported, citing LSEG data.

 

"You're having this massive sentiment correction during a period where earnings is delivering maybe above bull expectations, and, yet, there's so much fear circulating in the market," Marta Norton, chief investment strategist at retirement and wealth services provider Empower, was quoted as saying by Reuters.

 

Traders also await the September US jobs report, which is due to be released Thursday after being delayed because of the US government shutdown. Private market surveys have pointed to a cooling labour market. The reading is expected to provide cues regarding the monetary policy trajectory that the US Federal Reserve will adopt at its December meeting. Currently, expectations of Fed fund futures traders are evenly split, with one half predicting a 25-basis point benchmark rate cut and the other half expecting the apex bank to hold its overnight lending rates steady, data from CME Fedwatch tool showed. 

 

"The stock market has started to doubt the Fed's ability to cut rates in December. So, should Thursday's jobs report come in weaker than expected, it may clear the path for the Fed to cut in December and fuel the Santa Claus rally we anticipate, which could push the S&P 500 to 7,100 by year-end," James Demmert, Main Street Research, was quoted as saying by Bloomberg.

 

Following are the closing levels of US indices Tuesday:

 

Index	Level	Change in %
S&P 500	6617.32	(-)0.83
NASDAQ Composite	22432.85	(-)1.21
Dow Jones Industrial Average	46091.74	(-)1.07

 

(Eshitva Prakash)

 

End

 

US$1 = INR 88.61

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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