Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., November 17, 2025. REUTERS/Brendan McDermid Purchase Licensing Rights, opens new tab
- Futures down: Dow 0.79%, S&P 500 0.49%, Nasdaq 0.61%
- Home Depot drops after cutting FY profit forecast
- Axalta Coating Systems climbs on merger talks with AkzoNobel
Nov 18 (Reuters) – Wall Street was set to fall at the open on Tuesday, as concerns over lofty equity valuations and dimming chances of an interest rate cut from the Federal Reserve weighed on sentiment, while investors look ahead to Nvidia’s earnings and key government data due later this week.
Most heavyweight tech stocks were under pressure in premarket trading, with Amazon.com
, down 2.2%, leading the declines. Chip stocks, including Advanced Micro Devices
and Intel
, also slipped more than 1% each.
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Nvidia’s
quarterly results, due after markets close on Wednesday, are seen as a litmus test for the AI-driven rally that has pushed markets to record highs this year. The chip designer’s shares were down 1.2%, extending Monday’s near 2% drop.
“Investors will be reviewing the earnings results with a fine-tooth comb looking for any sort of cracks within the earnings as well as the guidance to get an idea as to whether this is just a short-term nervous movement or the beginning of something deeper,” said Sam Stovall, chief investment strategist at CFRA Research.
Alphabet
CEO Sundar Pichai told the BBC in an interview on Tuesday that no company would be unscathed if the AI boom collapses.
At 8:45 a.m. ET, S&P 500 E-minis were down 32.5 points, or 0.49%, Nasdaq 100 E-minis were down 152.75 points, or 0.61%, and Dow E-minis were down 369 points, or 0.79%.
Dow component Home Depot
dropped 4.1% after the home improvement chain forecast a bigger drop in full-year profit. Rival Lowe’s
also slid 3.1%.
Big box retailers Walmart
and Target
also report this week, with their results expected to provide insights into the health of the American consumer.
Concerns over high valuations and dwindling expectations of a December rate cut have led to a pullback in U.S. stocks, with the S&P 500 down more than 3% from its October peak.
The S&P 500
and the Nasdaq
both closed below their 50-day moving averages on Monday, an important technical threshold, for the first time since late April.
The Dow
closed below its 50-day moving average for the first time since October 10.
EYES ON DATA AS SHUTDOWN IN REAR-VIEW
Key economic data releases are expected in the next few days, after the longest government shutdown in U.S. history officially ended last week.
The much-delayed September jobs report is set to be released on Thursday, but may do little more than confirm earlier private market surveys pointing to a cooling labor market.
An August factory orders report is expected later on Tuesday.
Meanwhile, traders now see a 46.4% chance of an interest rate cut from the Fed in December, down from nearly 67% a week ago and a more than 93% chance recorded a month earlier, according to the CME FedWatch Tool.
At least three Fed officials are expected to make public remarks through the day.
Before the bell, Axalta Coating Systems
rose 6.5% after Dulux paint maker AkzoNobel
said it plans to merge with the company.
Reporting by Shashwat Chauhan and Twesha Dikshit in Bengaluru; Editing by Shilpi Majumdar and Krishna Chandra Eluri
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