Global stock markets slipped on Tuesday as investors grew cautious ahead of Nvidia’s highly anticipated earnings report—an update many see as a key test of whether the booming AI sector is becoming overhyped.
Markets were already on edge due to signs of a slowing U.S. economy and fading expectations that the U.S. Federal Reserve will cut interest rates anytime soon. That mix of worries pushed many investors to step back from risky assets.
In early trading, U.S. stock futures fell, with the S&P 500 down 0.5% and the Nasdaq off 0.6%. Europe’s STOXX 600 also dropped sharply—falling 1.4% and marking its worst four-day slide since April. Volatility in the region hit a one-month high.
Analysts say investors are simply tired after months of strong gains.
“There are plenty of reasons to be cautious right now—Nvidia earnings, upcoming U.S. payroll data, and just general exhaustion,” said Michael Brown of Pepperstone.
Bitcoin also dipped below $90,000 for the first time in seven months, and major U.S. indices slipped under key technical levels, adding to the nervous mood.
All Eyes on Nvidia
Nvidia, whose chips power much of today’s AI technology, will report earnings on Wednesday. Investors fear any sign of weakness could trigger a broader sell-off, especially after tech billionaire Peter Thiel’s hedge fund sold its entire Nvidia stake earlier this year.
Adding to concerns, Google CEO Sundar Pichai warned that no tech company would escape the impact if the AI boom crashes. Meanwhile, big Asian tech stocks—including SoftBank and Tokyo Electron—fell sharply, dropping between 3.7% and 7.5%.
Analysts say investors are now questioning whether the massive spending on AI is sustainable. Many of the world’s biggest tech companies have recently borrowed billions to fund new AI infrastructure, a trend that has raised eyebrows.
Japan Facing Market Pressure
Japan also faced turbulence. Government bonds fell as traders worried about Prime Minister Sanae Takaichi’s heavy spending plans. The Bank of Japan has been slowly raising interest rates but remains uncertain about the timing of the next hike.
Some analysts believe Japan may wait until 2026 before tightening policy again, especially as the government prefers to keep borrowing costs low.
Other Market Moves
Gold edged down 0.2% to $4,036 an ounce.
Brent crude oil slipped 0.4% to $63.92 a barrel.
Bitcoin dropped to around $91,288—about 30% below its peak.
The U.S. dollar rose to its strongest level against the yen in nine months before easing slightly.
Overall, markets remain tense as investors wait to see whether Nvidia’s results will calm fears—or confirm them.
