On Tuesday, stock indexes closed lower, with the S&P 500 down -0.84%, Dow Jones down -0.34%, and Nasdaq 100 down -1.55%. Data service and software stocks declined, dragging the market lower. Chip makers and AI-infrastructure stocks also fell as investors shifted away from tech.

Stocks initially rose on strong earnings from Palantir and Teradyne, but later retreated. Palantir forecasted higher revenue, while Teradyne’s Q1 revenue beat expectations. Mining stocks rallied as gold and silver prices surged.

Cryptocurrency-exposed stocks dropped as Bitcoin hit a 1.25-year low. Richmond Fed President mentioned an improving economic outlook with risks. The partial US government shutdown continues to affect markets.

Earnings season is in focus, with 80% of S&P 500 companies beating expectations. Expectations for Q4 earnings growth are positive. The markets are pricing in a 9% chance of a rate cut in March.

Overseas markets saw mixed results, with the Euro Stoxx 50 down and China’s Shanghai Composite up. Interest rates were stable, with T-notes benefiting from safe-haven demand.

Stock movers included software, chip, and travel booking companies. Gold and silver mining stocks rose. PayPal, FedEx, and Merck were among the top gainers and losers.

Earnings reports for 2/4 include companies like Alphabet, Qualcomm, and Uber. The author did not have positions in mentioned securities. Information provided is for informational purposes only.

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