U.S. stocks slid on Tuesday, as investors weighed a wave of earnings reports that highlighted challenges in the tech sector. The Nasdaq Composite fell almost 2%, the S&P 500 dropped 1.3%, and the Dow Jones Industrial Average slipped about 0.9%, or roughly 400 points, after a modest rally the previous day.
Palantir surprised with stronger-than‑expected quarterly results, hinting that the AI trade might still have room to grow. But the optimism faded early in the session when several major technology names began to slide, dragging the broader index down.
Nvidia’s shares fell more than 3% amid reports that OpenAI’s dissatisfaction with its latest AI chips is slowing down a potential $100 billion investment deal. Amazon and Microsoft also lost ground, reflecting a broader sell‑off in software stocks that followed the unveiling of an AI‑powered productivity tool for in‑house lawyers by Anthropic.
AMD’s after‑hours earnings report added another layer of scrutiny to the AI narrative. Its results could offer a clearer picture of how the AI boom is affecting chipmakers, especially as investors grow wary of over‑spending by big tech.
PayPal missed earnings estimates and issued a cautious outlook, causing its stock to tumble over 16%—a sharp drop amid an exodus from software shares. Other companies slated to report, such as Pepsi, Pfizer, and Chipotle, added further market uncertainty.
In corporate news, Disney announced that parks chief Josh D’Amaro will become the company’s next CEO, replacing Bob Iger on March 18. The shares fell on the news, reflecting investors’ caution around leadership changes.
While tech stocks weighed on the market, precious metals took the opposite path. Gold surged more than 6% to a new daily high since 2008, while silver jumped over 10% after a sharp dip earlier in the week, as investors sought safe‑haven assets.
Political developments also influenced the market. The House passed a procedural vote that brings the partial government shutdown closer to an end, with a narrow 217‑215 margin. Meanwhile, oil prices climbed after a U.S. fighter jet shot down an Iranian drone, adding to the day’s mix of geopolitical and economic headlines.
