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The U.S. stock market is slipping again on Tuesday, following a global sell-off, as Nvidia, bitcoin and other Wall Street stars keep falling on worries that their prices shot too high. Home Depot is also dragging the market lower after saying it made less in profit during the summer than analysts expected. The S&P 500 dipped 0.4%, following up on sharp swings the last couple weeks, and pulled further from its all-time high set late last month. The Dow Jones Industrial Average was down 373 points, or 0.8%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.6% lower. The struggles are a sharp turnaround from the months of relentless rallying for the U.S. stock market since April, when it sold off after President Donald Trump shocked the world with stiff tariffs. That rally, though, was so strong that critics said it may have carried stock prices too high, too fast and left the market at risk of a sharp drop. They pointed in particular to stocks swept up in the mania around artificial-intelligence technology, which have been surging at spectacular speeds. Many big investors still seem to be expecting stock prices to rise further, according to the latest monthly survey of global fund managers by Bank of America Global Research. But when asked what the No. 1 risk for the market is, one with a lower probability of happening but a high chance of damage, 45% pointed to an AI bubble. That beat out trouble in the bond market, inflation and trade wars. The highest net percentage of investors in 20 years are also saying companies are overinvesting, according to the survey. The worry is that all the investment pouring into AI chips and data centers worldwide may not produce the kind of revolution that proponents have been predicting, or at least not as profitable a one. Fervent demand for Nvidias AI chips have made it into Wall Streets most valuable stock, and it briefly topped $5 trillion in value after more than doubling in four of the past five years. But the chip companys 1.8% drop on Tuesday means its down 9.5% for the month so far. Other high-flying areas of the market with their own evangelists have also been struggling lately. Bitcoins price briefly fell below $90,000 during the morning, down from nearly $125,000 last month. Home Depot helped drag the market lower after falling 3.4%. It reported a weaker profit for the summer than analysts expected and cited a variety of reasons. Chief among them was a lack of storms, which would have driven customers to buy more home-improvement supplies. But CEO Ted Decker also pointed to consumer uncertainty and continued pressure in housing for preventing an expected increase in demand from happening. Reporting stronger profits is one of the ways a company can make its stock price look less expensive, because stock prices tend to track with earnings over the long term. Elsewhere on Wall Street, Cloudflare fell 2.8% after an issue at the internet infrastructure provider caused global outages for ChatGPT and other services. In the bond market, Treasury yields eased. The yield on the 10-year Treasury sank to 4.10% from 4.13% late Monday. In stock markets abroad, indexes tumbled across Europe and Asia, following up on Wall Streets losses on Monday. Japans Nikkei 225 dropped 3.2% after feeling extra pressure from a jump in Japanese government bond yields, reflecting rising risks as Prime Minister Sanae Takaichi prepares to boost government spending and push back the timetable for bringing down Japans huge national debt. South Koreas Kospi sank 3.3%, and Frances CAC 40 fell 1.8% for two of the larger drops worldwide. Stan Choe, AP business writer AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
Category:
E-Commerce
Roblox is stepping up its age verification system for users who want to privately message other players and implementing age-based chats so kids, teens, and adults will only be able to message people around their own age. The moves come as the popular gaming platform continues to face criticism and lawsuits over child safety and a growing number of states and countries are implementing age verification laws. The company had previously announced the age estimation tool, which is provided by a company called Persona, in July. It requires players to take a video selfie that will be used to estimate their age. Roblox says the videos are deleted after the age check is processed. Users are not required to submit a face scan to use the platform, only if they want to chat with other users. Roblox doesnt allow kids under 13 to chat with other users outside of games unless they have explicit parental permissionand unlike different platforms, it does not encrypt private chat conversations, so it can monitor and moderate them. While some experts have expressed caution about the reliability of facial age estimation tools, Matt Kaufman, chief safety officer at Roblox, said that between the ages of about five to 25, the system can accurately estimate a person’s age within one or two years. But of course, theres always people who may be well outside of a traditional bell curve. And in those cases, if you disagree with the estimate that comes back, then you can provide an ID or use parental consent in order to correct that, he said. After users go through the age checks, they will be assigned to age groups ranging from under nine, nine to 12, 13 to 15, 16 to 17, 18 to 20 and over 21. Users will then be able to chat with their age group or similar age groups, depending on their age and the type of chat. Roblox said it will start enforcing age checks in Australia, New Zealand, and the Netherlands in the first week of December and the rest of the world in early January. A growing number of tech companies are implementing verification systems to comply with regulations or ward off criticism that they are not protecting children. This includes Google, which recently started testing a new age-verification system for YouTube that relies on AI to differentiate between adults and minors based on their watch histories. Instagram is testing an AI system to determine if kids are lying about their ages. Barbara Ortutay, AP technology writer
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E-Commerce
Home Depot‘s third-quarter was mixed with fewer violent storms reaching shore, more anxiety among U.S. consumers, and a housing market that is in a deep funk. The company lowered its fiscal 2025 adjusted earnings forecast but raised its expectations for sales growth. 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. It is the third consecutive quarter that Home Depot, an overperformer in recent years, has missed profit expectations. Home Depot’s stock declined more than 3% before the opening bell Tuesday. Shares of rival Lowe’s, which will report its quarterly results on Wednesday, fell more than 2%. 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. Revenue for the Atlanta company rose to $41.35 billion from $40.22 billion, topping Wall Street projections of $41.15 billion. Sales at stores open at least a year, a key gauge of a retailers health, increased 0.2%. In the U.S., comparable store sales edged up 0.1%. Customer transactions fell 1.4% in the quarter. The amount shoppers spent rose to $90.39 per average receipt from $88.65 in the year-ago period. Neil Saunders, managing director of GlobalData, said that Home Depot’s quarter was negatively impacted by external factors, not missteps made by the company. Americans who have grown more anxious over the economy were were definitely a contributor, he said. The summer months were particularly challenging in this regard as consumers were actively making choices over how to spend their money, and home improvement took something of a back seat to experiences, travel, and personal indulgences, he said. Home Depot now anticipates fiscal 2025 adjusted earnings will decline approximately 5% from fiscal 2024s $15.24 per share. It previously expected adjusted earnings would fall about 2% from its results in the prior fiscal year. The chain now foresees fiscal 2025 sales growth of about 3%. Its prior forecast was for sales growth of approximately 2.8%. The company predicts comparable sales growth will be slightly positive. Previously, it predicted comparable sales growth of about 1%. In August, Home Depot said that shoppers should expect modest price increases in some categories as a result of rising tariff costs, though they wouldnt be broad-based. Company executives told analysts during its earnings call then that more than 50% of its products are sourced domestically and wouldnt be subject to any tariffs. Home Depots results come as the U.S. housing slump drags on, with the countrys home turnover rate at the lowest level in decades. About 28 out of every 1,000 homes changed hands between January and September, the lowest U.S. home turnover rate going back to at least the 1990s, according to an analysis by Redfin. The home turnover rate represents the number of homes sold, divided by the total number of existing sellable properties. While sales data show whether more or fewer homes are selling in a given period, the home turnover rate helps illustrate how homeowners are staying put longer. The U.S. housing market has been in a slump dating back to 2022, the year mortgage rates began climbing from historic lows that fueled a homebuying frenzy at the start of this decade. Michelle Chapman, AP business writer
Category:
E-Commerce
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