02.09.202514:08:33UTC+00US Stocks Hold Most of Losses

On Tuesday, U.S. stocks pared some of their sharper declines yet remained significantly lower, mirroring a global decrease in equity values amid renewed concerns about the tech sector's valuation and an unsustainable fiscal environment. The S&P 500 and Nasdaq 100 both dropped nearly 1%, while the Dow lost 300 points. Nvidia saw a 3% drop, and AMD decreased by 3.5%, as ongoing doubts about the future returns on artificial intelligence technologies led investors to reassess their substantial investments in both software and hardware companies.

Simultaneously, long-term bonds experienced a decline due to concerns over the White House's expansive fiscal policies, which deepened the yield curve's steepening. This occurred as rate futures indicated increased confidence in a 25 basis-point interest rate cut by the Federal Reserve this month.

In corporate movements, Kraft Heinz hovered around break-even after announcing plans to split into two separate companies, while Constellation Brands tumbled 6% following a downward revision of its financial outlook. On the economic data front, the ISM Manufacturing PMI highlighted a more pronounced contraction than anticipated.