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Nasdaq falls, NVIDIA drops 5% ahead of next earnings report from big tech companies

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U.S. stocks fell on Tuesday afternoon, led by a drop in shares of AI chip giant Nvidia (NVDA) as investors awaited major earnings reports from the likes of Microsoft (MSFT) and AMD (AMD).

The S&P 500 (^GSPC) fell 0.5% and the tech-heavy Nasdaq Composite Index (^IXIC) dropped 1.1% following lackluster trading in the major indexes. The Dow Jones Industrial Average (^DJI) held on to a 0.4% gain.

The stock market is in the midst of a critical week with the Fed decision, July jobs data and earnings reports from four of the “Magnificent Seven” large-cap stocks. All of this will be crucial for investors as they weigh hopes for interest rate cuts against concerns that Big Tech companies have lost steam and wonder whether the recent sell-off in stocks is over.

Semiconductor stocks were weak on Tuesday, with Nvidia shares falling 6% during trading hours.

All eyes are now on Microsoft's quarterly report, which will be released after the close of trading and will provide the basis for the results of Apple (AAPL), Amazon (AMZN) and Meta (META) in the coming days.

Wall Street is watching closely for signs that big AI investments are starting to pay off, especially after investors shifted from big tech companies to smaller stocks and a volatile July stock market that highlighted the risks of AI trading.

Coffee shop chain Starbucks (SBUX) and semiconductor giant AMD are scheduled to report earnings after the market closes.

A notable theme has emerged this earnings season: Investors are eager to back underperforming companies that signal they will see a turnaround soon.

read more: 32 charts that tell the story of today's markets and economy

Meanwhile, the Federal Reserve began its July policy meeting on Tuesday. Policymakers are not expected to make any changes to borrowing costs on Wednesday, but they will be setting the stage for a rate cut in September. After strong inflation data in June, market discussions have focused on the timing and number of rate cuts this year.

live8 Updates

  • Meth to pay $1.4 billion to Texas to settle facial recognition lawsuit

    Meta agreed to pay $1.4 billion to settle a lawsuit with Texas that alleged it violated Texas law by using biometric data without users' consent.

    Texas Attorney General Ken Paxton said the settlement is the largest secured by a single state, and it follows a 2021 agreement in which the company, as it was known, paid $650 million to settle similar claims in Illinois.

    “We are pleased to have resolved this matter and look forward to exploring future opportunities to deepen our business investments in Texas, including data center development,” Mehta said in a statement.

    The lawsuit stems from Facebook's facial recognition system, which previously defaulted to recognizing users but was later changed to ask users whether they wanted to use the feature.

    Meta's shares fell less than 1% on Tuesday, following a broader decline in technology stocks. The company is due to report earnings on Wednesday.

  • Stocks rise in afternoon trading

    Below are some of the stocks that led Yahoo Finance's trending ticker page during Tuesday afternoon trading.

    NVIDIA (NVDA): The AI ​​darling led the tech sector lower, dragging semiconductor stocks down, with its shares down 6% on Tuesday afternoon. Investors rallied ahead of earnings reports from big tech companies, with Microsoft and AMD due to report earnings after the close.

    Cloud Strike (CRWD): The fallout from the cybersecurity company's outage earlier this month continues to impact stock prices. CrowdSlike shares fell 11% on Tuesday after CNBC reported that Delta Air Lines was seeking damages from the company and Microsoft due to the global IT outage.

    PayPal(Pipple): Shares of the payments company rose nearly 8% after the company announced that its second-quarter earnings beat expectations on both revenue and profit. The company reported revenue of $7.89 billion, beating expectations of $7.82 billion. Adjusted earnings per share also beat expectations, coming in at $1.19 compared to analysts' expectations of $1.00.

    JetBlue (JBL)The airline's shares rose more than 16% on Tuesday after it reported a second-quarter profit of $25 million and executives unveiled a new cost-cutting strategy to turn around the business.

  • Stocks fell in afternoon trading

    The tech slump continued into Tuesday afternoon, with many of the biggest companies dropping, dragging the broader market down with them.

    The two major indexes fell ahead of earnings reports from big technology companies this week and a key Federal Reserve policy meeting that concludes on Wednesday.

    The S&P 500 (^GSPC) fell 0.7%, while the tech-heavy Nasdaq Composite Index (^IXIC) dropped 1.4%. The Dow Jones Industrial Average (^DJI), less impacted by the tech decline, rose about 0.3%.

  • The US national debt has surpassed a new milestone of $35 trillion.

    Yahoo Finance's Ben Warschl reports, “The U.S. national debt has breached the psychologically significant milestone of $35 trillion in recent days, up $1 trillion since January and adding nearly $5 billion each day so far in 2025.”

    That latest barrier was officially breached last Friday. The Treasury Department's daily tally, compiled and released late Monday, showed total debt at $35.1278 trillion.

    “This is crazy,” Tesla (TSLA) CEO Elon Musk said in a swift response to the news in an X post.

    The U.S. deficit has increased by more than 75% between the Trump and Biden administrations, but the issue has been put on the back burner during the 2024 election cycle.

    Please see here for the detail.

  • Nasdaq's decline accelerates, down 1%

    The tech-heavy Nasdaq Composite Index (^IXIC) saw its losses accelerate mid-morning as semiconductor stocks fell, with AI chip maker Nvidia (NVDA) shares dropping 6%.

    Other semiconductor stocks also fell ahead of chip giant AMD's (AMD) earnings report, which is due to be released after the market close.

    The Nasdaq Composite Index fell more than 1%, while the S&P 500 (^GSPC) dropped 0.5%.

    Semiconductor stocks fell on Tuesday, weighing on the Nasdaq Composite Index.Semiconductor stocks fell on Tuesday, weighing on the Nasdaq Composite Index.

    Semiconductor stocks fell on Tuesday, weighing on the Nasdaq Composite Index.

  • Nasdaq turns negative, Nvidia falls 4%

    The Nasdaq turned negative on Tuesday morning as shares of AI chip giant Nvidia (NVDA) fell about 4%.

    The tech-heavy Nasdaq Composite Index (^IXIC) fell 0.5%, erasing the previous day's gains, while the S&P 500 Index (^GSPC) also fell below flat.

    Other semiconductor-related stocks fell on Tuesday as investors waited for chip giant AMD ( AMD ) to report its quarterly earnings after the close.

  • Job openings remain steady in June, while job losses are at lowest level since November 2020

    Job openings were little changed in June, down slightly from the previous month, as investors watched for signs of further cooling in the labor market.

    New data released Tuesday by the Bureau of Labor Statistics showed there were 8.18 million job openings at the end of June, down from 8.23 ​​million in May.

    The May figure was revised up from an initially reported figure of 8.14 million job openings. Economists surveyed by Bloomberg had expected the June report to show 8 million job openings.

    According to the Job Openings and Labor Turnover Survey (JOLTS), 5.3 million jobs were added during the month, down slightly from May. The employment rate fell to 3.4% from 3.6% in May.

    Also reported on Tuesday was the job separation rate, a gauge of worker confidence, which rose to 2.1% for the second straight month. The 3.28 million people who left the workforce in June was the lowest monthly figure since November 2020.

  • Stocks rise ahead of Federal Reserve meeting as investors await Microsoft earnings

    Stocks rose on Tuesday morning as investors digested further gains and Federal Reserve officials were set to begin a two-day policy meeting.

    The S&P 500 (^GSPC) rose 0.2% and the tech-heavy Nasdaq Composite Index (^IXIC) added 0.3% after a weak performance in the major indexes the previous trading day. The Dow Jones Industrial Average (^DJI) rose 0.2%.

    Pfizer (PFE) raised its full-year outlook, and Merck (MRK) beat second-quarter profit expectations.

    Investors will be keeping an eye on Microsoft's (MSFT) quarterly results, which are due to be released after the market close on Tuesday. Coffee giant Starbucks (SBUX) is also scheduled to report results after the close.

    This is a big week for markets, with the Federal Open Market Committee meeting for two days and an interest rate decision scheduled for Wednesday afternoon, as investors expect Fed officials to prepare for a rate cut in September.

    Meanwhile, the monthly employment report is due to be released before the market opens on Friday.



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