Major US benchmarks closed lower as investors braced for a Fed rate hike, with rising Treasury yields and an existential debate over AI spending weighing on market sentiment.
Dow fell 425 points as investors trimmed risk ahead of the Fed's rate decision.
S&P 500 dropped 0.5% with broad-based selling across roughly 400 constituents.
Nasdaq Composite shed 0.8% as tech and AI stocks faced selling pressure.
Enova plunged 25% after withdrawing regulatory applications for its planned Grasshopper Bancorp acquisition, though it reaffirmed growth forecasts.
Skyworks rallied 12% on Apple's latest smartphone launch and progress on its planned Qorvo merger, reducing deal uncertainty.
Axon fell 9% after announcing a $1 billion convertible debt offering, raising dilution concerns despite capped calls.
Dave & Buster's fell 15% after reporting a net loss and revenue decline, though same-store sales decline eased.
Nvidia likely fell as investors sold AI stocks despite CEO Jensen Huang dismissing AI extinction fears.
US dollar rose for a second day as rising yields and rate hike expectations boosted the greenback.
Tesla shares likely pressured as investors dumped AI stocks amid existential AI risk debate, though Musk's AI investments continue.
Oil prices above $100 a barrel contribute to inflation risks and weigh on stock markets.
US markets retreated Tuesday as investors trimmed risk ahead of the Federal Reserve's anticipated rate hike. The Dow Jones fell 0.8%, while the S&P 500 and Nasdaq also saw broad-based declines amid rising Treasury yields and concerns over AI sector valuations. Investors are bracing for a 25 basis point rate increase as inflation risks and energy prices remain elevated.
Markets are reacting to the anticipation of a Federal Reserve interest rate hike, rising 10-year Treasury yields, and investor uncertainty regarding the long-term sustainability of AI spending.