US stock futures retreated on Tuesday as worries about an AI bubble continued to set markets on edge, with a pivotal Nvidia (NVDA) earnings report and shutdown-delayed jobs data on the horizon.

Dow Jones Industrial Average futures (YM=F) fell 0.7%, coming off the worst three-day run for the blue-chip benchmark since April. Contracts on the tech-heavy Nasdaq 100 (NQ=F) pulled back 0.8%, while those on the S&P 500 (ES=F) were roughly 0.6% lower on the heels of a bruising session for stocks.

Bitcoin briefly 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.

Worries about an AI bubble and the US economy added to the risk-off mood, as markets start to show signs of strain. Investors are now eyeing 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 data-center buildouts.

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. 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 4% lower. Results from major chains Walmart (WMT) and Target (TGT) are also set to hit this week.

Economic data: ADP weekly employment; Homebuilder sentiment (November); Import price index (October); Industrial production (October)

Earnings: Home Depot (HD), Baidu (BIDU), Amer Sports (AS), PDD Holdings (PDD), Medtronic (MDT), Dolby (DLB), Klarna (KLAR)

Here are some of the biggest stories you may have missed overnight and early this morning:

Google stands out at an uncertain moment for AI

Google CEO: No company is immune if AI bubble bursts

Trump ramps up his bid to soothe fears about rising prices

American workers turn to Uber and DoorDash to fill the income gap

Crypto plunge fuels jitters as markets beat a retreat

Nvidia looks set for $320 billion price swing after earnings

Stocks face a 'sell' signal as cash holdings decline

Home Depot cuts FY earnings outlook as demand falls short

Gold wavers amid fading rate-cut bets, tech stock jitters

Chinese search engine Baidu's Q3 revenue beats expectations

Yahoo Finance's Allie Canal reports:

America's labor market continues to cool, and the gig economy is quietly absorbing some of the employment strain being felt across the economy.

A new Goldman Sachs analysis found that platform-based gig work opportunities — which include major tech players like Uber (UBER), DoorDash (DASH), and Instacart (CART) — are holding up as traditional payroll growth cools.

About 20% of people who lost pay, lost a job, or had hours cut turned to gig platforms to make up the difference, the analysis said. More signs of a shrinking labor market are expected in this week's delayed September payrolls report, which is set to be released on Thursday.

Goldman found that gig hours rose the most in cities where payroll growth slowed, signaling that workers are taking on extra shifts to make up for lost hours or pay in traditional jobs.

Read more here.

Home Depot (HD) reported mixed third quarter earnings on Thursday, with the retail giant lowering its fiscal 2025 adjusted earnings forecast but raising its expectations for sales growth.

Home Depot stock fell more than 3% before the bell on Tuesday.

The AP reports:

For the three months ended Nov. 2, Home Depot earned $3.6 billion, or $3.62 per share. A year earlier it earned $3.65 billion, or $3.67 per share.

Removing one-time charges and benefits, earnings were $3.74 per share, a dime short of Wall Street expectations, according to a poll by FactSet.

“Our results missed our expectations primarily due to the lack of storms in the third quarter, which resulted in greater than expected pressure in certain categories,” CEO Ted Decker said in a statement. “Additionally, while underlying demand in the business remained relatively stable sequentially, an expected increase in demand in the third quarter did not materialize. We believe that consumer uncertainty and continued pressure in housing are disproportionately impacting home improvement demand.”

Read more here.

Axalta (AXTA) stock jumped 7% in premarket trading on Tuesday after Dulux owner AkzoNobel agreed to combine with the paint and chemicals company to create a $25 billion business.

PDD Holdings (PDD) stock fell 2% before the bell after reporting a 9% jump in revenue. The Temu owner had made moves to slash prices and offer steep discounts ‌were bolstering demand in its home market.

Amer Sports (AS) stock rose 6% in premarket trading after reporting third quarter results and raising its full-year guidance.

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.

Read more here.

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.

Read more here.

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.

Read more here.