Tuesday saw a decline in US markets as mood was affected by worries about trade tensions and economic growth, with the S&P 500 on track for its fourth consecutive day of losses.
The apprehensive tone was mirrored in the equity markets, as market leader Nvidia saw a 3 percent decline, and the Nasdaq Composite sank 1.5 percent. Investors are watching the AI chipmaker’s results, which are expected on Wednesday after the market close, for hints about how strong the AI surge is. Nvidia’s stock has underperformed the market, losing more than 8% of its value in 2025. The tech-heavy Nasdaq has lost money for the year due to this week’s sell-off, while the Dow Jones Industrial Average has held steady.
A lower-than-expected consumer confidence rating exacerbated the grim outlook. In February, the Conference Board’s index had its sharpest monthly dip since August 2021, dropping to 98.3, below forecasts of 102.3. This follows a string of poor economic indicators from the previous week, including data on manufacturing activity and dismal retail sales. Walmart’s conservative projection, which raised more concerns about the durability of consumer spending, exacerbated the unease.
The 10-year U.S. Treasury yield fell below 4.3 percent, its lowest level since December, as investors fled to the shelter of bonds due to the uncertainty. In the meantime, Bitcoin continued to decline, plunging below $90,000 to a three-month low and further down from all-time highs.
Meta Platforms, a significant tech company, declined almost 2 percent. Recession-related anxiety also hurt bank equities, causing Goldman Sachs, JPMorgan Chase, Citigroup, and Morgan Stanley to drop by around 1.5%.
Investors anticipate that Nvidia’s results will be a crucial gauge of market mood. A solid report may boost trust in the AI-driven surge, but any indications of weakness run the danger of making the problems facing the entire market worse.
In Asia-Pacific, markets fell Tuesday as investors weighed the Bank of Korea’s rate decision, responded to Wall Street’s overnight dip, and reacted to President Donald Trump’s increased threats of U.S. tariffs.
The Topix fell 0.43 percent to 2,724.7, while Japan’s Nikkei 225 led regional losses, losing more than 1 percent to end at 38,237.79. However, after Warren Buffett hinted at plans to raise Berkshire Hathaway’s ownership of the conglomerates, Japan’s big trading houses enjoyed significant increases. In South Korea, the small-cap Kosdaq dropped 0.50 percent to 769.43, and Kospi sank 0.57 percent to 2,630.29.
