Nasdaq Dips Amid Pre-Tech Earnings Jitters; Financial Stocks Keep Dow Afloat

The Nasdaq fell 1% as chip and megacap shares declined in anticipation of Big Tech earnings, while financial stocks helped the Dow rise. Microsoft and other tech giants saw stock drops, leading to a general market sell-off. Fed rate cut expectations and a mixed job market outlook added to investor caution.

The Nasdaq experienced a 1% decline on Tuesday, largely driven by drops in chip and megacap shares ahead of major tech earnings reports. Financial stocks, however, buoyed the Dow Jones Industrial Average, which rose by 0.16%.

Microsoft, a leader in artificial intelligence, saw its stock fall almost 1%, with other tech titans like Apple, Amazon.com, Meta Platforms, Alphabet, and Tesla also seeing dips. Nvidia led a sharper erosion in chip stocks, causing the Philadelphia SE Semiconductor index to drop by 2.4%.

Mixed economic signals, such as the anticipation of a Fed rate cut and a fluctuating jobs market, contributed to investor caution. Procter & Gamble and Merck both saw significant losses due to missing sales expectations and lowering profit forecasts respectively, while cybersecurity firm F5 saw a notable rise.

(With inputs from agencies.)