US stock futures fell on Tuesday, pointing to a return to losses as bitcoin's (BTC-USD) slump rattled nerves, with a pivotal Nvidia (NVDA) earnings report and shutdown-delayed jobs data on the horizon.

Dow Jones Industrial Average futures (YM=F) dropped roughly 0.3%, and S&P 500 futures (ES=F) also slid 0.3%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) moved 0.4% lower on the heels of sharp closing losses for Wall Street stocks.

The overnight moves follow a bruising session for equities. The Dow tumbled more than 550 points, or 1.2%, while the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) each shed nearly 1% as selling pressure intensified across big tech.

Nvidia dropped about 2% ahead of its closely watched fiscal third-quarter results due Wednesday after the bell. The chip giant’s report lands at a moment when investors are rethinking the durability of this year’s AI-fueled market rally. Concerns over stretched valuations, softening market breadth, accelerating AI-related depreciation, and a surge in Big Tech debt issuance have all added fuel to the debate.

Beyond Nvidia, investors will parse several key data points that could shape expectations for the Federal Reserve’s next moves. Rate-cut odds have been pared back significantly: Fed funds futures now price in about a 40% chance of a cut, down from over 90% a month ago. The Fed’s October meeting minutes arrive Wednesday, followed Thursday by the September jobs report, the first major economic reading since the government shutdown delays.

Earnings from major retailers Walmart (WMT), Home Depot (HD), and Target (TGT) are set to hit this week, offering insight into consumer strength ahead of the holiday season.

Bloomberg reports:

Bitcoin’s (BTC-USD) slide below $90,000 worsened a slump in Asia’s financial markets Tuesday, fueling alarm that leveraged investors would set off a negative spiral of selling pressure.

The cryptocurrency fell as much as 2.8%, the latest drop in a slide that has wiped out all of its gains for the year. That ramped up pressure across Asian stock markets: The MSCI Asia Pacific Index tumbled more than 2%, its worst performance in a month, and almost every market in the region lost ground.

Treasuries rose across the curve, with yields on 10-year notes (^TNX) falling four basis points. Haven currencies including the yen (JPY=X) and the Swiss franc (CHF=X) strengthened while the risk-sensitive Australian dollar (AUD=X) declined. The Bloomberg Asia Dollar Index dropped to the lowest since May. ...

“Bitcoin’s extended selloff has definitely amplified the market’s risk alarm, reinforcing the sense that something deeper may be shifting under the surface,” said Hebe Chen, an analyst at Vantage Markets in Melbourne.

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Baidu (BIDU) stock rose 2% before the bell on Tuesday after the Chinese search engine beat market expectations for its third quarter revenue. The company was helped by strong growth in its cloud business amid a recovering ad market.

Reuters reports:

The company reported ​total revenue of ‌31.17 billion yuan ($4.38 billion)，compared with estimates of 30.⁠7 billion ​yuan, according ​to data compiled by LSEG.

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AP Finance reports:

Asian shares tumbled on Tuesday, with benchmarks in Tokyo and Seoul sinking more than 3%, after Nvidia (NVDA) and other artificial-intelligence -related shares pulled U.S. stocks lower..

Regional markets felt a chill after the yield on 30-year Japanese government bonds surged to 3.31%, reflecting rising risks as Prime Minister Sanae Takaichi prepares to boost government spending and push back the timetable for bringing down Japan's huge national debt.

The yen (6J=F) was trading above 155 to the U.S. dollar, near its highest level since February. On Monday, the yen fell to its lowest level against the euro since 1999, when the unified European currency was launched.

Tokyo's Nikkei 225 (^N225) was down 3% at 48,835.20 by midday, with selling of tech shares leading the decline. Chip maker Tokyo Electron shed 5.4%, while equipment maker Advantest dropped 4.6%.

In Seoul, the Kospi (^KS11) fell 3.1% to 3,960.82. Samsung Electronics dropped 2.9%, while chip maker SK Hynix shed 5.7%.

In Taiwan, the Taiex (^TCHI) fell 2.3% as TSMC (TSM), the world's largest contract chip manufacturer, declined 2.4%.

Hong Kong's Hang Seng (^HSI) declined 1.5% to 25,997.20, while the Shanghai Composite (000888.SS) index slipped 0.6% to 3,949.83.

In Australia, the S&P/ASX 200 (^AXJO) gave up 2.1% to 8,452.50.

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