Tech Sector Volatility and Government Shutdown Influence Markets

The S&P 500 and Nasdaq slid as tech valuations were re-evaluated amid Nvidia's stock decline post-SoftBank's share selloff. AI-related stocks, previously market drivers, faced increased volatility due to uncertainties. The government shutdown's potential end affected market dynamics, with the U.S. Senate approving measures to reopen federal operations.

The stock market experienced notable shifts on Tuesday as concerns surrounding tech valuations emerged again. The S&P 500 and Nasdaq faced downturns due to fluctuations in technology shares, notably Nvidia and CoreWeave, which struggled following SoftBank's divestment.

A diverse performance across sectors showed AI companies losing momentum amid uncertainties over returns, while health stocks saw a promising rise. Analysts connected these market movements to the ongoing federal shutdown, which took a step closer to resolution with Senate approval of a reopening bill.

In contrast to technology's struggles, the energy sector and companies like Occidental Petroleum reported gains, reinforcing positive sentiment in some areas. However, overall market sentiments remained influenced by federal actions and macroeconomic concerns.

(With inputs from agencies.)