US stocks extended their sell-off on Monday, with major indexes posting their worst day in a month as investors retreated from risk ahead of two major catalysts: Nvidia’s earnings on Wednesday and the long-delayed September jobs report on Thursday.
The downturn turned notably more concerning after both the S&P 500 and the Nasdaq Composite closed below their 50-day moving averages for the first time since April — a technical break that traders see as a sign of weakening momentum.
The S&P 500 fell 0.9% to 6,672, while the Nasdaq dropped 0.8% to 22,708. The Dow Jones Industrial Average sank 1.2% (−557 points), marking its worst three-day stretch since April’s tariff turmoil.
Risk-off mood spreads across markets
Monday’s sell-off didn’t stop at equities. Crypto, gold, and high-flying tech stocks all fell sharply as traders reduced exposure ahead of a pivotal week for the AI trade and macro outlook.
- Bitcoin slid again, dropping below $92,000, down nearly 30% from its October peak.
- Big tech names — including Alphabet, Amazon, Meta, Nvidia, Dell, and HPE — all saw heavy selling.
- The Cboe Volatility Index (VIX) climbed to its highest level since April, signaling rising market anxiety.
“Investors are bracing for two big things: a look at the consumer through retail earnings, and Nvidia’s earnings,” said Adam Sarhan of 50 Park Investments. “You also have a consumer potentially getting weaker, not stronger.”
Nvidia takes center stage this week
Expectations are unusually high heading into Nvidia’s Wednesday earnings, a report that will test whether the AI boom that powered much of 2025’s rally can continue into next year.
Shares fell almost 2% on Monday, pressured by fresh positioning data showing that Peter Thiel’s hedge fund fully exited its Nvidia stake, and after a string of concerns about stretched AI valuations.
Even so, sentiment wasn’t uniformly negative. Alphabet gained 3% after Berkshire Hathaway revealed a new $4.3 billion stake, giving Google its own “Buffett bump.”
Jobs data finally returns
Thursday will bring the first official US labor market update since September, following the 43-day government shutdown.
Markets now see only a 45% chance of a December rate cut — down from 62% last week — after Fed officials adopted a more cautious tone.
A stronger-than-expected jobs report could push rate-cut hopes even lower. A weaker report could revive dovish expectations.
Retail earnings add another layer of uncertainty
This week also brings a wave of consumer-focused earnings:
- Home Depot (Tue)
- Target (Wed)
- Lowe’s (Wed)
- Walmart (Thu)
- Gap, TJX, BJ’s Wholesale, and others
With consumer sentiment weakening and tariffs raising costs, retailers are a key barometer for how much economic resilience is left.
Technical picture turns shaky
Monday’s close below the 50-day moving average for both the S&P 500 and Nasdaq breaks a 138-trading-day streak of support.
The Dow also slipped below its own 50-day level for the first time since early October.
Multiple tests of the same support level, especially in a risk-off environment, often increase the odds of a deeper pullback.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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