Stocks Drop as Wall Street Waits for Nvidia Results

The US stock market gave back more of its record-setting rally Tuesday after bond markets rattled by high inflation cranked up the pressure.

• The S&P 500 fell 49.44 points, or 0.7%, to 7,353.61.
• The Dow Jones Industrial Average fell 322.24 points, or 0.6%, to 49,363.88.
• The Nasdaq composite fell 220.02 points, or 0.8%, to 25,870.71.

Tech stocks are faltering following huge runs made because of excitement around artificial-intelligence technology, runs that critics said made them too expensive, the AP reports. The stumble comes as oil prices swing on uncertainty about how long the Iran war will keep the Strait of Hormuz closed for oil tankers. That in turn has pushed yields higher in bond markets, which is dragging on economies and pressuring all kinds of other investments.

The wait is on, meanwhile, for Nvidia to report its latest quarterly results. The chip company is due to report on Wednesday, and it's routinely blown past analysts' expectations each quarter. Not only that, it's provided forecasts for future growth that have consistently topped Wall Street's. How it does could determine whether technology stocks and the larger US stock market can maintain their rally. Nvidia fell 0.8% Tuesday and was one of the heaviest weights on the S&P 500 because of its immense size.

• "Every flow has its ebb," Rex Feng, Venu Krishna, and other strategists at Barclays Capital wrote in a report. They said investors have been pumping more money than usual into US stock funds, which helped fuel "the fastest rebound in decades; now the pendulum could swing backwards."

Akamai Technologies dropped 6.3% for one of Wall Street's sharper losses after the cybersecurity and cloud computing company said it wants to raise $2.6 billion through a convertible note offering. Home Depot rose 0.9% after flipping an early loss following its latest earnings report. Its profit and revenue edged past analysts' expectations, but an important measure for retailers that looks at performance for stores more than 1 year old came in below some analysts' expectations. CEO Ted Decker said Home Depot saw similar demand from its customers as it did throughout last year "despite greater consumer uncertainty and housing affordability pressure."

So far, many big US companies have been reporting stronger-than-expected profits for the latest quarter thanks in part to their customers continuing to spend in the face of high gasoline prices and other challenges. That's helped vault US stock indexes to records, but disquiet in the bond market is threatening that. In the bond market, Treasury yields climbed further. The yield on the 10-year Treasury rose to 4.66% from 4.61% late Monday and from less than 4% before the war with Iran began. That's a notable increase, and it's part of a worldwide climb that's making stock prices look even more expensive and threatening to slow the economy.