Bitcoin price today: dips to $92k as Fed cut doubts spark risk-off mood
Investing.com - Canada’s main stock slipped on Tuesday, following the slump in the prior session sparked in part by worries over the artificial intelligence spending boom.
By 12.01 ET, the S&P/TSX 60 index standard futures contract had fallen by 15 points, or 0.85%
S&P/TSX Composite index was down 93 points or 0.33% at 29,976.13.
Mirroring a selloff on Wall Street, the average declined by 0.8% to 30,076.21 on Monday, slumping to its lowest closing level since November 7.
Fears around the use of debt to backstop heavy AI capital expenditures have intensified recently, and during the session offset signs of cooling in Canadian inflation which underpinned hopes for more Bank of Canada interest rate cuts.
U.S. stocks lower
U.S. stocks were lower, adding to recent losses amid growing caution ahead of key earnings from Nvidia and a long-awaited labor market reading for September.
The Dow Jones Industrial Average fell 527 points, or 1.1%, the S&P 500 index dropped 15 points, or 0.2%, and the NASDAQ Composite slipped 85 points, or 0.4%.
All three of the main U.S. averages fell on Monday, with tech stocks among some of the biggest decliners. In particular, shares of Nvidia (NASDAQ:NVDA), the artificial intelligence-darling who is due to unveil crucial quarterly earnings later this week, dropped almost 2%.
The Dow Jones Industrial Average dropped over 500 points, or 1.2%, while the S&P 500 fell 0.9% and the NASDAQ Composite slipped 0.8%.
The S&P 500 is now off more than 2% in November after notching gains for six straight months. The index is off by more than 3% from its recent all-time high, but the tech-heavy Nasdaq is worse off, down more than 5% from its record.
Home Depot leads earnings parade
Investors have continued to dump large technology shares amid caution ahead of Wednesday’s quarterly earnings from Nvidia. The company is at the heart of a massive AI-fueled valuation surge over the past three years, with questions over this ascent having emerged in recent months.
Broader tech shares also fell amid growing doubts over the long-term prospects of AI, and the potential returns from the hundreds of billions of dollars being invested in the industry.
Beyond Nvidia, earnings from major retailers, including Walmart (NYSE:WMT) and Target (NYSE:TGT), are due this week.
Home Depot slashed its annual profit outlook, as tariff-fueled uncertainty hit demand for pricier renovation and do-it-yourself projects.
Elsewhere, Microsoft (NASDAQ:MSFT) will open its annual developer conference in San Francisco, with markets eager for the software giant to unveil more details about its plans for rapid data center expansion to meet demand for AI computing power.
Nonfarm payrolls in spotlight
Away from the corporate sector, investors are also awaiting the release of key U.S. economic readings that were delayed by a prolonged government shutdown in October.
Nonfarm payrolls data for September is due on Thursday, and will be closely watched for more insight into the labor market, which is a key consideration for the Federal Reserve.
Fed Governor Waller said on Monday that the central bank should cut interest rates to prevent further deterioration in the sector. But these comments come amid waning bets that the Fed will cut interest rates in December.
The delay of several key labor and inflation readings will see the Fed flying mostly blind into its December meeting, making a hold more likely as the policymakers await concrete evidence to base their decisions on.
Markets are pricing in just over a 40% chance for a 25 basis point cut during the Fed’s Dec 10-11 meeting, down from 55.4% last week, CME Fedwatch showed.
Crude retreats
Oil prices slightly lightly as supply worries eased following the resumption of activity at Russia’s key export hub following a Ukrainian drone and missile strike.
Brent futures dropped 0.1% to $64.16 a barrel, and U.S. West Texas Intermediate crude futures were mostly unchanged at $59.86 a barrel.
Russia’s Novorossiysk port resumed oil loadings on Sunday following a two-day suspension triggered by the attack.
Exports from Novorossiysk and a nearby Caspian Pipeline Consortium terminal, together represent about 2.2 million barrels per day, or roughly 2% of global supply.
Gold declines
Gold prices fell, extending recent losses as waning confidence in a December interest rate cut by the Fed supported the dollar and pressured non-yielding assets.
Caution before the long-delayed September nonfarm payrolls reading also benefited the dollar and weighed on metal prices.
Spot gold fell 0.1% to $4,040.55 an ounce, while gold futures for December slid 0.9% to $4,039.29/oz.