Dow drops nearly 500 points as S&P suffers its longest losing streak since August

Stocks extended their decline on Tuesday as technology shares continued to pull back amid growing concerns over stretched valuations in AI-linked companies. Sentiment was further pressured after bitcoin briefly slipped below $90,000, signaling a broader reduction in investor risk appetite.

The Dow Jones Industrial Average fell 498.50 points, or 1.07%, to close at 46,091.74. The S&P 500 dropped 0.83% to 6,617.32, marking its fourth consecutive daily loss — the index’s longest losing streak since August. The Nasdaq Composite slid 1.21% to 22,432.85. Earlier in the session, the Dow was off nearly 700 points, or 1.5%, while the S&P 500 and Nasdaq were down as much as 1.5% and 2.1%, respectively.

Pressure centered on major tech names, including Nvidia, which declined nearly 3%, along with other “Magnificent Seven” giants Amazon and Microsoft. Amazon lost more than 4%, while Microsoft retreated almost 3%. Nvidia has now tumbled more than 10% this month ahead of its third-quarter earnings report due Wednesday after the close. The chipmaker’s performance has become a focal point for investors debating whether this year’s AI-driven market rally is sustainable amid increasingly expensive tech valuations and rising Big Tech debt issuance.

A major AI partnership announcement failed to lift sector sentiment. Anthropic revealed plans to spend $30 billion with Microsoft, while Microsoft and Nvidia will invest billions into the startup — yet both stocks remained sharply lower.

Bitcoin’s brief drop below $90,000 added to the cautious tone. Because many tech investors also hold significant cryptocurrency exposure, the decline heightened fears that further weakness could spill over into equities. The cryptocurrency later steadied above $92,000