S&P 500 tumbles nearly 1% as investors rotate out of tech, Dow slides more than 160 points: Live updates

The three leading U.S. indexes finished Tuesday's session in the red.

The S&P 500 dropped 0.84% to settle at 6,917.81, while the Nasdaq Composite moved 1.43% lower to 23,255.19. The Dow Jones Industrial Average declined 166.67 points, or 0.34%, to 49,240.99.

— Sean Conlon

Shares of stocks with significant private credit market holdings were diving on fears about exposure to the industries being disrupted by artificial intelligence, most notably, software.

Shares of Blue Owl, TPG, Ares Management and KKR were all down by double digit percentages on Tuesday. Apollo Global was off by 7%. BlackRock shed 5%.

Publicly traded software stocks have been slammed this year as investors grew increasingly concerned about AI eating into their future growth and profit margins as companies use programs like Anthropic's Claude Code to build their own software. The iShares Software ETF is down 20% this year, including another 5% decline on Tuesday. Read more.

— Leslie Picker

The House of Representatives on Tuesday narrowly passed a bill to end the three-day partial shutdown of much of the U.S. government, virtually guaranteeing the end of the closure.

The vote was 217-214 and sends the bill to President Donald Trump, who has said he will sign it immediately. Much of the government has been shuttered since Saturday morning. Read more.

— Garrett Downs

As Walmart's market cap crosses the $1 trillion mark, Jefferies analysts were touting a new opportunity for the retail giant: price cuts.

Earlier Tuesday, PepsiCo signaled that it would be cutting the price of Lay's, Doritos and other snacks by as much as 15%. Jefferies analyst Corey Tarlowe says this is "one of the clearest indications yet" that packaged food companies will be shifting toward making products more afforable.

"After several years of culmative price inflation that lifted salty-snack prices ~38% form 2020 to 2024, we view this as the beginning, not the end, of branded price normalization, as manufacturers face slowing volumes, consumer pushback and intensifying competition from private-label alternatives," Tarlowe wrote in a note to clients.

The analyst said this kind of an environment favors Walmart because it will allow the company to flex its price leadership and capture more market share.

Walmart stock was recently up more than 2%, while Pepsi shares rose almost 5% and hit a fresh 52-week high.

— Christina Cheddar Berk

Bitcoin slipped more than 5% Tuesday, reaching a low of 73,844.67.

That marks its lowest level since Nov. 6, 2024, when it traded down to 68,898.00. Year to date, bitcoin has fallen about 15%.

— Nick Wells, Sean Conlon

The selloff in software shares has deepened, with the iShares Expanded Tech-Software Sector ETF down another 5% Tuesday.

The ETF is now down about 28% from its recent high and off roughly 17% so far this year, underscoring how quickly sentiment has turned against one of the market's former darlings.

The drawdown reflects mounting investor unease that artificial intelligence could disrupt the sector's long-standing growth model. Software companies long prized for sticky subscriptions and predictable renewals are facing tougher scrutiny as AI tools promise to automate workflows, compress pricing and lower barriers to entry for new competitors.

— Yun Li

The trend of corporate job cuts tied to artificial intelligence may be a foil for companies trying to undo over-hiring in recent years, according to Citadel CEO Ken Griffin.

"AI has gotten a lot of very negative headlines in terms of being the excuse that companies have used to trim their workforces down," Griffin said at a Wall Street Journal event in West Palm Beach, Florida, on Tuesday. "But, objectively, I think very few businesses are actually seeing productivity gains that come anywhere close to the headline of job losses that we have seen."

Griffin's comments come as economists have worried about the state of the job market amid rising layoff numbers. Job cuts were more than 50% higher in 2025 than 2024, according to consulting firm Challenger, Gray & Christmas. Amazon, Home Depot and UPS announced job cuts last week.

Several companies have pointed to efficiency gains as AI becomes increasingly mainstream. But skeptics have cautioned that firms may be "AI-washing," a term describing the act of blaming the technology for reductions due to other reasons.

"Companies are now saying, 'You know what, I can trim some of my workforce in areas that are not strategic. I can tighten my belt a little bit here at this moment in time,'" Griffin said.

Blaming AI is "kinder and gentler than saying, 'I've kind of employed you for the last three years, but I don't really need you,'" he said.

— Alex Harring

U.S.-listed shares of Novo Nordisk sank 12% after the Danish drugmaker said it expects sales and profit growth to decline this year.

Novo Nordisk said Tuesday it anticipates sales will fall between 5% and 13% at constant exchange rates for 2026.

"The outlook reflects expectations for sales growth within International Operations and expectations for a sales decline within US Operations," Novo said in a statement.

The latest news comes as maker of Wegovy and Ozempic battles to regain its footing as the leading weight-loss drugmaker.

— Michelle Fox

Software stocks extended a bruising selloff on Tuesday, as investors continued to reassess the sector's long-term growth prospects in the age of artificial intelligence.

The WisdomTree Cloud Computing Fund fell 3.2%, pacing a sixth straight session and its longest losing streak this year. Individual names across enterprise software sank to fresh 52-week lows, including HubSpot, ServiceTitan, ServiceNow, Atlassian, Klaviyo, DocuSign, Asana, PagerDuty, Salesforce, Workday and Adobe.

The retreat reflects an intensifying debate on Wall Street over whether AI will ultimately help or hurt traditional software vendors. Investors have grown wary that AI-native competitors and automation tools could erode demand for legacy licenses and workflows, pressuring pricing power and renewal rates.

Valuations once underpinned by predictable subscription growth are being recalibrated as markets weigh the risk that AI could permanently compress long-term revenue potential across the sector.

— Yun Li, Gina Francolla

A short-term rebound for Indian equities is ahead if the U.S. and India agree to reduced tariff rates, says Bernstein.

If signed, the new trade deal would move India to an 18% tariff rate from 50%. According to Bernstein, this will trigger a short-term rally and position the financials, information technology and telecommunication sectors for gains. 

"We see this as an appropriate time to call for a trading buy on India," wrote Bernstein analyst Venugopal Garre. "With markets weakened by sluggish earnings and a lackluster budget, improving sentiment (not earnings) should drive the move."

The Nifty 50, a gauge of the Indian stock market, "will likely head back to 26,500 and settle there as focus returns to earnings. Our year-end target of 28,100 and our full year rating of Neutral stays unchanged." Garre noted. 

President Donald Trump announced the trade deal on Monday and said the agreement is contingent on India ending purchases of Russian oil and reducing tariffs on American goods.

Analysts say conditions will remain volatile even if the two countries reach an agreement, but improving geopolitical sentiment "allows India to be seen as a balancing power in Asia" and "boosts India's long-term trade positioning."

— Itzel Franco

Richmond Federal Reserve President Thomas Barkin said Tuesday that the central bank still has work to do in getting inflation back to a comfortable level.

While not tipping his hand on his views where interest rates should go, Barkin told an audience in Columbia, S.C. that he sees the labor market and inflation drifting lower but still above target. He noted that the Fed cut its key interest rate three times last year and "we have some distance to travel" on inflation.

"I think of these cuts as having taken out some insurance to support the labor market as we work to complete the last mile to bring inflation back to target. So far, so good," he said. "But we know things change, and as they do, we remain ready to respond as appropriate."

Markets expect the Fed to be stay on hold until at least June before cutting again. Barkin does not get a vote this year on the rate-setting Federal Open Market Committee, though as an alternate he participates in meetings and offers his outlook on where rates and the economy are heading.

— Jeff Cox

The broad market index traded 0.1% higher, while the Nasdaq Composite advanced 0.4%. The Dow Jones Industrial Average hovered around the flatline.

— Fred Imbert

Gold rebounded Tuesday as precious metals jumped after their big sell-off last week, and Bank of America thinks the rally could reignite. 

While the bank acknowledges it is concerned by the pace of the gains, strategist Michael Widmer writes that there is enough momentum to send gold past $6,000 in the next few months.

"Going through all of the recent bull runs, rallies have not come to an end because markets were overbought but because the drivers that had made the precious metals attractive subsided," Widmer wrote. He argues that the fundamentals of President Donald Trump's push for a weaker greenback and geopolitical uncertainty are still in place to support a rally.

However, the strategist did acknowledge that volatility will likely remain elevated, and that the market's reaction to Trump's Fed chair pick may mean concerns over central bank independence — a catalyst for gold prices — are easing. 

— Davis Giangiulio

Berkshire Hathaway resumed selling shares of DaVita, a provider of kidney dialysis services.

A new regulatory filing Monday evening revealed that Berkshire sold 1,658,480 shares of DaVita through a Thursday transaction. Berkshire remains DaVita's biggest institutional investor with a near 45% stake, according to FactSet. The stock, which Berkshire first bought in 2011, is still the conglomerate's 11th biggest holding.

The two companies reached an agreement in April 2023 under which DaVita agreed to buy back shares each quarter to reduce Berkshire's stake to 45%.

The sale came a few days before the company's blowout earnings. Shares of DaVita soared more than 12% in premarket trading Tuesday after the firm reported better-than-expected fourth-quarter results and projected annual profit above estimates.

— Yun Li

Check out the companies making headlines before the bell:

• Palantir — The stock jumped 11% following the AI-powered software provider's fourth-quarter earnings beat. Palantir reported adjusted earnings of 25 cents per share, versus the 23 cents expected from analysts polled by LSEG. Revenue was $1.41 billion, topping the $1.33 billion consensus estimate.
• Merck — Shares fell around 1% after the pharma giant issued a modest 2026 outlook, as the company gets set to lose some drug patent protections and face competition from generic versions. The company expects revenue to range between $65.5 billion and $67 billion for the year. Analysts polled by LSEG expected revenue around $67.6 billion.
• PepsiCo — The snack and beverage giant reported fourth-quarter earnings and revenue that beat analyst expectations. However, shares were down around 1% as the company sees volumes declining.

Read the full list here.

— Sarah Min

Pfizer on Tuesday reported fourth-quarter results that topped estimates even amid dwindling demand for its Covid products, while reaffirming its modest 2026 guidance that rattled investors in December. Read more.

— Annika Kim Constantino

Merck fell around 1% in the premarket after the pharma giant issued a modest 2026 outlook, as it gets set to lose some drug patent protections and face competition from generic versions.

The company expects revenue to range between $65.5 billion and $67 billion for the year. Analysts polled by LSEG expected revenue around $67.6 billion.

— Fred Imbert

PepsiCo reported fourth-quarter earnings and revenue that beat analyst expectations.

"PepsiCo's fourth quarter results reflected a sequential acceleration in reported and organic revenue growth, with improvements in both the North America and International businesses," CEO Ramon Laguarta said in a statement.

However, shares were down around 1% as the company sees volumes declining.

— Fred Imbert

Stocks and funds linked to gold and silver — which rebounded on Tuesday from a sharp sell-off — posted gains in pre-market trade.

The ProShares Ultra Silver ETF was last seen trading 16.1% higher ahead of the opening bell, while the abrdn Physical Silver Shares ETF gained around 8.5%. The iShares Silver Trust (SLV) — which has been at the center of a retail investment frenzy — gained 8.6% by 4:30 a.m. on Tuesday morning.

Meanwhile, shares of gold and silver miners were also significantly higher. Endeavour Silver jumped 9.2% in pre-market trading, while Coeur Mining added 9.4%. Hecla Mining and First Majestic Silver were both up more than 8%.

Spot gold was last seen 5% higher at $4,893.69 an ounce, while spot silver advanced 8% to settle at $85.87.

— Chloe Taylor

Gold and silver prices rebounded on Tuesday after suffering a historic sell-off, with analysts suggesting the recent corrections were more a positioning reset than a sustained downturn.

Spot gold was last up about 6% to $4,938.6 per ounce. Gold futures in New York were last up over 6%, hovering at around $4,951 as of 3.26 a.m. ET.

Spot silver rose nearly 10% to $86.96 per ounce. Silver futures in New York were up 13% at $87.23 per ounce.

Read more here.

— Lee Ying Shan

European stocks moved higher on Tuesday as global markets settled following a short-lived sell-off in cryptocurrencies and precious metals.

Shortly after the opening bell, the pan-European Stoxx 600 was 0.6% higher, with most sectors and all major regional bourses in positive territory. Mining stocks led the gains, with the Stoxx Basic Resources index jumping 1.8% as precious metals rebounded from a historic selloff.

The U.K.'s FTSE index opened just above the flat line, and Germany's DAX and France's CAC 40 were both over 0.4% higher.

— Chloe Taylor

Alphabet's self-driving car unit Waymo on Monday said it raised a $16 billion funding round that values the company at $126 billion "post-money."

The new funding is the latest move by Alphabet to fund Waymo's continued expansion to more markets.

The new valuation is more than double what Waymo notched after its last funding round in October 2024. That was a series C round of $5.6 billion at a $45 billion valuation. Alphabet committed $5 billion in a multiyear investment to Waymo at the time.

″​​This milestone is built on a foundation of safety that is now statistically superior to human driving," Waymo co-CEOs Tekedra Mawakana and Dmitri Dolgov wrote in a blog post. "We are no longer proving a concept; we are scaling a commercial reality." More here.

— Jennifer Elias

Check out the companies making headlines in after-hours trading.

• Palantir Technologies — The software analytics company saw its stock jump nearly 5% after reporting a beat on top and bottom lines. Palantir posted adjusted earnings of 25 cents per share, beating analysts' expectations of 23 cents per share, according to LSEG estimates. Its revenue of $1.41 billion also flew past the $1.33 billion estimate.
• NXP Semiconductors — Shares slid nearly 6%. NXP said that it sees first-quarter non-GAAP gross margin coming in at 57.0%, in line with the StreetAccount consensus estimate. The guidance overshadowed beats on the top and bottom lines in the fourth quarter.
• Teradyne — The robotics stock popped 20% after Teradyne issued rosy guidance for the current quarter. The company called for revenue of $1.15 billion to $1.25 billion in the first quarter, while analysts polled by LSEG sought $935 million. Fourth-quarter results also topped estimates: Teradyne reported adjusted earnings of $1.80 per share on revenue of $1.08 billion. Analysts were looking for $1.37 per share on revenue of $973 million.

Read here for the full list.

— Pia Singh

Shortly after 6 p.m. ET on Monday, futures tied to the S&P 500 and Nasdaq-100 futures gained about 0.1% and 0.2%, respectively. Futures tied to the Dow Jones Industrial Average edged up by nine points, or less than 0.1%.

— Pia Singh