Stock market today: S&P 500, Nasdaq slip as Nvidia slides after SoftBank share sale

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The Dow Jones Industrial Average (^DJI), which includes fewer tech stocks, added 0.5%. The moves follow a roaring start to the week for stocks as hopes for the AI trade revived.Testing that faith, SoftBank Group (SFTBY) said Tuesday it sold its entire stake in chipmaker Nvidia (NVDA) to fund its own investments in AI development. The move comes at a time that Wall Street is questioning whether the AI spending spree will pay off amid lofty valuations for related stocks. Shares of Nvidia dropped more than 3%.Elsewhere in tech, CoreWeave (CRWV) trimmed its full-year revenue forecast, taking the shine off its strong quarterly earnings. Its stock fell around 14% after the Nvidia-backed AI infrastructure provider flagged a delay by a data center partner.Those concerns weighed on markets, despite growing hopes that the 41-day US shutdown could soon end. The push to reopen government took another step forward as the Senate on Monday evening passed a funding measure, advancing it to the House for a vote.A reopening would lead to the release of economic data delayed by the stoppage, giving markets better insight into the likely path of interest rates. But fresh data could take a while to arrive, even if the shutdown ends this week.US companies shed 11,250 jobs a week during October, ADP's private-sector payrolls report out Tuesday showed — an example of the private data filling the public vacuum. Its figures suggest a slowing in the labor market.On the trade front, doubts about the lasting power of the US-China tariff truce resurfaced around the crucial issue of rare-earth supplies. The Wall Street Journal reported that Beijing plans to keep its exports of the minerals out of US military hands, even as it speeds up flows to other American buyers.LIVE 12 updates49 mins agoJake ConleyIron ore market set for influx of new supply as Guinea port opens access to major China-controlled mining projectThe market is expected to see a large influx of new iron ore supply as the newly renovated Morebaya port in Guinea opens today, signaling the start of shipments from the largest-ever mining project in Africa.The Morebaya port on the coast of West Africa will connect the global market to the Simandou mountain range in Guinea, where British-Australian mining conglomerate Rio Tinto Plc (RIO) and a series of Chinese companies have been mining one of the world's largest iron ore deposits. First shipments are expected by the end of the year.Shares in Rio Tinto held roughly flat after a five-day run-up of around 3.5%.The $23 billion Simandou project is expected to hold at least three billion tons of iron ore, the second commodity in the world by value after only oil. Once the Morebaya port reaches full operation, it is expected to ship out 120 million tons per year of the steel feedstock, according to Bloomberg.China is the world's largest importer of iron ore. As Beijing has been jostling for more control over iron ore prices, Simandou — where Chinese companies control roughly three-quarters of the mining project — gives China a powerful new source of supply.Not only does the mine break China's dependence on foreign companies such as Rio Tinto and Australian mining giant BHP Group (BHP) for imports of the material. It also adds iron ore to the list of metals over which Beijing has a high level of supply and pricing control — like the rare earth minerals that were the central talking point of the recent October sit-down between President Trump and his Chinese counterpart Xi Jinping.Today at 3:34 PM UTCLaura BrattonNvidia leads Mag 7 stocks lowerNvidia (NVDA) led a decline in Big Tech stocks on Tuesday.Shares in the AI chipmaker sank more than 3%. Tesla (TSLA) stock fell over 2%, while Broadcom (AVGO) and Meta (META) shares dropped more than 1%. Alphabet (GOOGL, GOOG) and Microsoft (MSFT) slipped fractionally, while Amazon (AMZN) hovered around the flat line.Apple (AAPL) shares, meanwhile, rose nearly 2%.Nvidia's drop on Tuesday comes as financial updatesfrom CoreWeave (CRWV) and TSMC (TSM) cast doubt on the AI boom. AI data center and cloud provider CoreWeave is backed by Nvidia and a major customer for its chips, while semiconductor manufacturer TSMC (TSM) is a key partner for its flagship Blackwell product.The biggest driver of the drop, however, appeared to be SoftBank's (SFTBY, 9984.T) surprise move to divest its entire Nvidia stake.Nvidia's stock is still up more than 40% for the year to date.Today at 3:26 PM UTCLaura BrattonCoreWeave sinks as AI cloud firm trims revenue forecastCoreWeave's (CRWV) stock sank more than 9% after the Nvidia-backed (NVDA) company trimmed its full-year revenue forecast.The AI data center and cloud provider lowered its 2025 revenue guidance to a range of $5.05 billion to $5.15 billion. Its prior range was $5.15 billion to $5.35 billion.CoreWeave also slashed its capital expenditure forecast, as one of its third-party data center developers fell behind schedule, affecting its ability to bring computing capacity online.Bank of America (BAC) analyst Brad Sills lowered his price outlook on CoreWeave shares to $140 from $168 apiece, following the results released after market close on Monday.Meanwhile, the company's adjusted operating income — a measure of how much profit CoreWeave makes from its core operations — was $217 million, below its interest expense of $311 million, noted DA Davidson analyst Gil Luria."We continue to believe this business is not worth scaling," Luria wrote in a note to clients.CoreWeave relies on debt borrowed at high interest rates against its massive store of Nvidia chips — a deteriorating asset — to buy more Nvidia chips to rent out to customers.Its customers are also some of Nvidia's biggest customers: Microsoft (MSFT) makes up the overwhelming majority of CoreWeave's revenue, raising fears that CoreWeave could go bust once major hyperscalers finish building out AI data centers and as they could eventually rely on their own custom chips rather than Nvidia's.Nvidia's entangled relationship with CoreWeave has raised eyebrows on Wall Street as analysts begin to question the circular dynamic in AI dealmaking. Nvidia is a major investor in CoreWeave, its biggest supplier, and its customer. The AI chipmaker also has a multibillion-dollar agreement to purchase unsold capacity from the cloud provider.Today at 3:12 PM UTCAllie CanalAmazon Prime Video says its ad tier now reaches 315 million global viewersAmazon (AMZN) Prime Video's ad-supported streaming service now reaches more than 315 million viewers worldwide each month, the company said on Tuesday. That's a jump from the 200 million figure the tech megacap shared in April.Amazon entered the space in January 2024, when it began making all of its Prime Video subscriptions ad-supported by default. It's seen as a key growth engine, as more viewers and streaming platforms from Netflix (NFLX) to Disney (DIS) embrace ad-supported tiers.Since that time, Amazon has launched advertising for the streaming service in 16 countries, which now include the US, UK, Germany, Japan, and India.According to Amazon, the 315 million figure represents an unduplicated average monthly active ad-supported audience across its originals; licensed films and series; live sports and events; and free ad-supported channels. The estimate is based on internal data collected from September 2024 to August 2025, with some regional variations due to launch dates.The milestone "demonstrates our customer-obsessed approach to enhancing the viewing experience while delivering powerful opportunities for brands," said Jeremy Helfand, vice president of Prime Video advertising.Today at 2:38 PM UTCLaura BrattonTech leads stocks down at the openTech dragged US stocks down on Tuesday at the open amid renewed fears of an AI bubble.The Nasdaq Composite (^IXIC) dropped roughly 0.5%, and the S&P 500 (^GSPC) fell below the flat line. The Dow Jones Industrial Average (^DJI), which includes fewer tech stocks, inched up 0.2%.The market action comes after SoftBank Group (SFTBY) sold its Nvidia (NVDA) stake, and as financial updates from AI chip manufacturer TSMC (TSM) and data center provider CoreWeave (CRWV) disappointed investors.Today at 2:00 PM UTCKaren FriarAI fueled the stock market rally. Earnings are now giving it staying power.Yahoo Finance's Allie Canal reports:After a year dominated by artificial intelligence headlines, Wall Street’s bull case is shifting toward something more fundamental to stocks: earnings power that’s beginning to broaden beyond Big Tech.Morgan Stanley, UBS, and other major firms are pointing to a clear throughline this earnings season: Profits are strong, margins are stabilizing, and growth, while still concentrated in AI-heavy tech, is beginning to spread.“There are clear signs that the earnings recovery is underway and pricing power is firming,” Morgan Stanley equity strategist Mike Wilson wrote in a client note on Monday. ...FactSet’s latest data backs that up. With more than 90% of S&P 500 (^GSPC) companies reporting, 82% have beaten earnings estimates, while overall profits rose 13.1% year over year. That marks the fourth straight quarter of double-digit growth. ...Still, some strategists warn that the trend will need to continue from here.“Earnings sentiment staged a partial comeback,” RBC Capital Markets strategist Lori Calvasina wrote in a note to clients, adding that while revisions have improved for two straight weeks, they remain “well below” summer highs.Read more here.Today at 12:45 PM UTCKaren FriarThe bowl crisis indicator flashes redYahoo Finance's Hamza Shaban reports:Read more here in the takeaway from today's Morning Brief.Today at 12:41 PM UTCJenny McCallGood morning. Here's what's happening today.Economic data: NFIB small business optimism (Oct.)Earnings calendar: Sony (SONY), Sea Limited (SE), Alcon (ALC), AngloGold Ashanti (AU), Vodafone Group (VOD), Oklo (OKLO), Fermi (FRMI)Here are some of the biggest stories you may have missed overnight and early this morning:The bull case for stocks is broadening beyond AISoftBank unloads Nvidia stake for $5.8 billion in surprise moveCoreWeave trims sales outlook on data center delay; stock fallsThe bowl crisis indicator flashes redDemocrats trade election euphoria for angst over shutdown dealChina plans to keep its rare earths out of US military handsMeta chief AI scientist Yann LeCun plans to exit, launch own start-upIntel CEO to oversee AI efforts after its head quits for OpenAISony ups profit forecast as it dials back tariff hit viewXpeng stock jumps amid progress on human-like robotsToday at 12:27 PM UTCJenny McCallPremarket trending tickers: Meta, Beyond Meat and SonyMeta (META) stock fell 1% before the bell on Tuesday. The drop in share price follows the news that Meta's chief artificial intelligence scientist Yann LeCun is planning to leave the social media giant to found his own start-up.Beyond Meat (BYND) stock fell 5% in premarket trading on Tuesday after releasing its delayed earnings report Monday's closing bell.Sony (SONY) shares rose 5% before the bell after raising its earnings forecast after a stronger than expected second quarter.Today at 10:40 AM UTCGrace O'DonnellParamount Skydance stock pops as investors weigh its cost-cut plansParamount Skydance (PSKY) shares rose about 5% in premarket trading on Tuesday as investors digested its third quarter earnings.Quarterly revenue came in just below Wall Street expectations in the results, released in after hours on Monday. But the company struck an upbeat tone for what lies ahead, raising its cost-savings target, projecting stronger streaming profits, and signaling upcoming price hikes for Paramount+.Revenue totaled $6.7 billion for the quarter ended in September, slightly shy of analysts’ $7 billion estimate, in the company’s first earnings release since completing its merger with Skydance in August.Paramount Skydance CEO David Ellison said the company now expects $30 billion in total revenue and $3.5 billion in adjusted OIBDA for 2026, driven by a “healthy acceleration” in streaming. The company also expects Paramount+ to be profitable this year and to grow that profitability in 2026.Direct-to-consumer revenue jumped 17% year over year, while weakness in TV Media offset those gains. Paramount+ revenue climbed 24%, with total subscribers reaching 79.1 million.Across the full quarter, Paramount reported $324 million in operating income and a net loss of about $257 million, though pre- and post-merger results aren’t directly comparable.Ellison said the newly combined company has taken “meaningful steps” to streamline operations, including a reduction of 1,000 employees from its workforce and plans to cut an additional 1,600 employees.Paramount also raised its efficiency-savings target to $3 billion, up from $2 billion previously.On top of its efficiency goals, the company also plans to raise prices for Paramount+ early next year in the US, part of a broader push to boost profitability and fund new content and technology investments.The company recently announced upcoming price increases in both Canada and Australia.Today at 9:35 AM UTCKaren FriarSoftBank unloads Nvidia stake for $5.8 billion in surprise moveShares of Nvidia (NVDA) fell around 1.5% in early trading after SoftBank (SFTBY, 9984.T) offloaded its entire holding in the AI chip giant.Bloomberg reports:SoftBank Group Corp. sold its entire stake in Nvidia Corp, pocketing $5.8 billion ahead of a rash of planned investments by founder Masayoshi Son to build his own sphere of influence supporting artificial intelligence.The Tokyo-based company had raised its stake in Nvidia to about $3 billion by the end of March. That stake and a windfall at the Vision Fund startup investment unit helped SoftBank report a surprise net income of ¥2.5 trillion ($16.2 billion) in its fiscal second quarter, far outrunning the average of analyst estimates of ¥418.2 billion. ...Son’s company now boasts a portfolio that includes some of the world’s most sought-after names in AI: OpenAI (OPAI.PVT) and Oracle Corp. (ORCL). Those stakes boosted SoftBank’s paper gains and helped drive a 78% surge in its share price over the three months ending in September — its best such performance since the December quarter of 2005.The number of bets from which SoftBank is successfully recouping its investment has increased, “so we raise our forecasts,” Citigroup analyst Keiichi Yoneshima wrote in a note ahead of the earnings release. The analyst set his target price for SoftBank’s stock at ¥27,100, linking his calculations with OpenAI’s valuation and assuming a future valuation range of $500 billion to $1 trillion for the ChatGPT operator.Read more here.Today at 3:42 AM UTCRian HowlettTSMC growth slows in warning sign of AI bubbleBloomberg reports:Read more here. 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