US stock futures trimmed losses on Tuesday as the bitcoin (BTC-USD) slump that set markets on edge started to ease, with a pivotal Nvidia (NVDA) earnings report and shutdown-delayed jobs data on the horizon.

S&P 500 futures (ES=F) were 0.2% lower, recovering ground after dropping 0.8% in the very early hours. Contracts on the Dow Jones Industrial Average futures (YM=F) and the tech-heavy Nasdaq 100 (NQ=F) also came off premarket lows, down about 0.4% and 0.2%, respectively, on the heels of sharp closing losses for Wall Street stocks.

Bitcoin dipped below $90,000 on Tuesday for the first time in seven months, deepening a sell-off that wiped out all of the leading cryptocurrency's gains for the year. That fueled alarm in Asia — where Japanese stocks booked their worst loss since April — and helped push 10-year Treasury yields (^TNX) lower.

The risk-off mood now appears to be lifting somewhat, as US stocks reverse course and bitcoin rises above $91,000 — though worries about the AI boom and the US economy are still in play. The Dow tumbled 1.2% in a bruising session for equities on Monday, logging its worst three-day run since April's "Liberation Day" slide as selling pressure intensified across Big Tech.

But the market still faces two key tests of those concerns in coming days.

Chipmaker Nvidia's third quarter results land on Wednesday, at a moment when investors are rethinking the durability of this year’s AI-fueled market rally. A surge in Big Tech debt issuance is in focus, too, as analysts question huge spending on AI datacenter buildouts.

And on Thursday, Wall Street will look to the September jobs report release to help shape expectations for the Federal Reserve’s next policy moves. It's the first major economic reading since the US shutdown delayed official data releases, adding uncertainty. Traders have pared rate-cut odds significantly from total conviction a month ago, and are now pricing in a 46% chance of easing.

Meanwhile, a stream of earnings from retailers should offer insight into consumer strength ahead of the holiday season. Home Depot (HD) cut its full-year profit guidance after its earnings missed estimates before the bell, pulling its shares almost 2% lower. Results from major chains Walmart (WMT) and Target (TGT) are also set to hit this week.

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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