S&P 500 and Nasdaq fall to start the week, Nvidia leads tech decline: Live updates

Stocks fell Tuesday as Nvidia led a broader tech decline ahead of the chipmaker’s earnings report.

The Dow Jones Industrial Average dipped 107 points, or less than 0.9%. The S&P 500 slipped 0.8%. The tech-heavy Nasdaq Composite lost 1.4%.

Shares of Nvidia, which is set to report earnings Wednesday after the bell, fell nearly 6%. Although Nvidia is expected to post impressive results, investors have expressed concerns about its sky-high valuation. Shares of Amazon, Microsoft and Meta each lost more than 1%.

“With technology now trading at close to 30x forward estimates, that seems to be a ceiling for the tech sector. Makes it pretty hard for additional PE multiple expansion,” said Sam Stovall, chief investment strategist at CFRA Research. “What investors have to wait on is for earnings to come in better-than-anticipated so that the 2024 and 2025 estimates end up being improved.”

Financial stocks were also in view Tuesday following a blockbuster announcement that Capital One Financial agreed to purchase Discover Financial Services in an all-stock deal worth $35.3 billion, which is expected to close in late 2024 or early 2025. Capital One slumped about 1% following the announcement, while Discover jumped 12.5%.

In separate deal news, Walmart announced it will acquire TV maker Vizio for $2.3 billion, or $11.50 a share, leading shares of Vizio to climb higher by about 15%. Walmart shares added more than 4% after the big-box retailer also beat quarterly earnings and revenue expectations, fueled by double-digit growth in the company’s global e-commerce sales.

The moves follow a losing week on Wall Street after economic data raised concerns that the Federal Reserve may not begin cutting interest rates as soon, or by as much, as market participants expected this year.

Tuesday kicks off the shortened trading week after U.S. markets were closed Monday in observance of the birthday of George Washington.