Market Jitters: U.S. Stocks Dip Amid Earnings Concerns

U.S. stocks declined on Tuesday, with the S&P 500 facing consecutive losses. Concerns over stock valuations, especially in tech, and disappointing forecasts from Home Depot contributed to the downturn. Despite a strong earnings season, market sentiment remains fragile amid broader economic worries.

U.S. stocks saw a decline on Tuesday, continuing a losing streak for the S&P 500 as concerns over high valuations affected tech-related shares. Home Depot's disappointing forecast also contributed to market unease ahead of Nvidia's quarterly results expected on Wednesday, crucially tied to AI-driven market performance.

The September jobs report, delayed by a government shutdown, is anticipated on Thursday, with earlier surveys suggesting a slowing labor market. The number of Americans on jobless benefits witnessed a surge in recent weeks. Home Depot shares fell 4.4%, missing earnings estimates and lowering the company's profit forecast.

Despite stronger-than-expected overall S&P 500 earnings growth, sentiment remains shaky. The Dow, S&P 500, and Nasdaq all fell Tuesday amid concerns about valuations and rate cut expectations. The CBOE Volatility Index hit a one-month high, indicating heightened market anxiety.

(With inputs from agencies.)