Stock market falls
US stocks fell on Tuesday as investors pulled back from riskier assets. All three major indexes ended lower, led by losses in technology stocks. The selloff came despite strong earnings from some large companies. The Nasdaq Composite fell 1.01% to 23,353.77. The S&P 500 slipped 0.49% to 6,942.34. The Dow Jones Industrial Average closed nearly flat, down 7.52 points at 49,400.14. Market activity showed broad selling pressure. Investors reduced exposure to stocks that had risen sharply in recent months.
Technology stocks
Technology stocks were the main reason for the market decline. These stocks make up a large share of the Nasdaq and have gained strongly due to excitement around AI. Nvidia shares fell more than 2%. PayPal dropped nearly 18% after issuing weak guidance for the year ahead. The sharp fall in PayPal showed how quickly sentiment can change when expectations are missed. Bitcoin also declined and hit its lowest level since April.
Companies and earnings
Some companies posted solid results, but their gains did not lift the wider market. Palantir Technologies rose more than 5% after reporting strong earnings and positive guidance linked to government and AI contracts. Merck gained over 3% on steady demand for its cancer drug. PepsiCo climbed about 4% after reporting strong sales growth. Alphabet traded slightly higher as investors remained cautious ahead of results. Despite these gains, investors stayed focused on bigger risks. More than 100 S&P 500 companies are reporting earnings this week, increasing uncertainty in the market.
Federal Reserve
Comments from the Federal Reserve added to caution. Richmond Fed President Thomas Barkin said inflation still needs to slow further. His remarks lowered hopes for near-term rate cuts. Markets now expect interest rates to stay high for longer. This keeps pressure on growth stocks and increases volatility. Even though the Fed said it remains flexible, investors reacted to the lack of clear signals.
Gold and silver
As stocks fell, investors moved money into safer assets. Gold prices jumped more than 6% and moved above $4,900 per ounce. Silver surged over 13%.
