US' main indices extend losses on weak consumer confidence data; Nvidia falls 3% ahead of earnings

The uncertainty sent investors flocking to the safety of bonds, driving the 10-year U.S. Treasury yield below 4.3 percent, its lowest level since December.

US markets slid on Tuesday as concerns over economic growth and trade tensions weighed on sentiment, with the S&P 500 heading for its fourth straight day of losses.

Equity markets reflected the nervous mood, with the Nasdaq Composite tumbling 1.5 percent as heavyweight Nvidia fell 3 percent. The AI chipmaker’s earnings, due Wednesday after market close, are in focus as investors seek clues on the strength of the artificial intelligence rally. Nvidia’s stock has lost over 8 percent so far in 2025, lagging the broader market. This week's sell-off has dragged the tech-heavy Nasdaq into the red for the year, while the Dow Jones Industrial Average managed to remain flat.

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A weaker-than-expected consumer confidence reading added to the gloom. The Conference Board’s index dropped to 98.3 in February, falling short of expectations for 102.3 and marking its steepest monthly decline since August 2021. This follows a string of disappointing economic reports last week, including sluggish manufacturing activity and retail sales data. Adding to the unease, Walmart’s cautious outlook raised fresh doubts about consumer spending resilience.

The uncertainty sent investors flocking to the safety of bonds, driving the 10-year U.S. Treasury yield below 4.3 percent, its lowest level since December. Meanwhile, Bitcoin extended its losses, tumbling to a three-month low below $90,000 and deepening its slide from record highs.

Another major tech player, Meta Platforms, slipped more than 2 percent. Bank stocks weren’t spared either, as recession jitters dragged down Goldman Sachs, JPMorgan Chase, Citigroup, and Morgan Stanley by around 1.5 percent each.

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Amid this backdrop, investors are bracing for Nvidia’s earnings to provide a key test of market sentiment. A strong report could revive confidence in the AI-driven rally, while any signs of weakness risk amplifying the broader market’s struggles.

Meanwhile, in Asia-Pacific, markets declined on Tuesday as investors reacted to Wall Street’s overnight drop and renewed U.S. tariff threats from President Donald Trump, while also weighing the Bank of Korea’s rate decision.

Japan’s Nikkei 225 led regional losses, slipping over 1 percent to close at 38,237.79, while the Topix shed 0.43 percent to 2,724.7. However, Japan’s major trading houses saw strong gains after Warren Buffett signalled plans to increase Berkshire Hathaway’s stake in the conglomerates. In South Korea, the Kospi fell 0.57 percent to 2,630.29, while the small-cap Kosdaq declined 0.50 percent to 769.43.