Risk-Off Builds Ahead of Nvidia Earnings as S&P 500 Extends Four-Day Slide

Market Overview

Ahead of Nvidias much-anticipated earnings report, risk-off sentiment dominated the markets on Tuesday, pushing U.S. equities lower once again. All three major indexes hit fresh one-month lows, with the S&P 500 extending its slide for a fourth consecutive session—the longest losing streak in nearly three months.

The semiconductor sector fell over 2%, led by a nearly 3% drop in Nvidia, while Amazon plunged more than 4%, leading declines among the “Magnificent Seven” tech giants. In contrast, Chinese ADRs edged higher after five straight sessions of losses, with Baidu rising nearly 2.7% following earnings, while Pinduoduo tumbled over 7%.

In the bond market, U.S. Treasury prices climbed across the curve, though gains narrowed late in the session. The U.S. dollar index snapped a two-day winning streak, while the Japanese yen weakened to a fresh nine-month low.

Cryptocurrencies staged a dramatic reversal: Bitcoin (BTC) rebounded nearly 5% to trade back above $93,000 after briefly plunging below $90,000, while Ethereum (ETH) surged more than 7% from below $3,000.

Commodities saw a mixed performance—gold broke below the $4,000/oz mark for the first time in a week, while crude oil rebounded to a one-week high.

Hot Topics Preview

● Continuing Jobless Claims Rise to 1.957 Million

With the partial U.S. government shutdown disrupting most official economic releases, alternative data sources suggest the labor market remains resilient. According to historical data published on the Department of Labors website, initial jobless claims totaled 232,000 for the week ending October 18, offering the first glimpse of labor trends since the shutdown began earlier this month.

Meanwhile, continuing claims—a measure of the total number of people still receiving unemployment benefits—rose slightly to 1.957 million, up from 1.947 million the previous week. The Labor Department noted that the shutdown has suspended regular weekly jobless claims reports for the past three weeks.

● Saudi Crown Prince Visits the U.S. for the First Time in Seven Years

Saudi Arabia‘s Crown Prince Mohammed bin Salman made his first U.S. visit in seven years, with talks centering on a $1 trillion investment initiative—roughly equal to Saudi Arabia’s annual GDP.

When asked whether the kingdom could fulfill its investment pledges given current oil prices, the crown prince asserted that Saudi Arabia‘s projects were “real opportunities, not for show.” He highlighted AI chips as a key area of interest, citing the nation’s growing demand for computing power.

According to the White House, the bilateral investment framework includes roughly $142 billion in U.S. defense sales, $14.2 billion in industrial equipment purchases by Saudi firms, and a $4.8 billion order for Boeing 737-8 aircraft. In addition, Google and Oracle will jointly invest $80 billion in cutting-edge technologies across both countries.

U.S. Secretary of State Antony Blinken is expected to announce chip export permits to Saudi Arabia as early as Tuesday.

Key Data to Watch

21:30 (GMT+8) — U.S. Housing Starts (Annualized) and Housing Starts MoM (%)

23:30 (GMT+8) — U.S. EIA Crude Oil Inventories (Barrels)

02:00 (GMT+8, Overnight) — FOMC Meeting Minutes