Jensen Huang, chief executive officer of Nvidia Corp., speaks during the 2026 CES event in Las Vegas, Nevada, US, on Tuesday, Jan. 6, 2026.
Advanced Micro Devices reported fourth-quarter earnings on Tuesday after the bell. The chipmaker beat Wall Street's revenue and profit estimates, but shares plunged more than 8% in extended trading because its guidance came up short of some expectations.
AMD's main rival, Nvidia , is facing difficulties of its own. CEO Jensen Huang told CNBC's Jim Cramer on Tuesday that there's "no drama involved" between the company and OpenAI. "Everything's on track," he added.
Huang was referring to Nvidia's $100 billion investment in OpenAI, struck in September, which is "on ice," reported The Wall Street Journal on Saturday. Nvidia shares fell more than 3.4% on Tuesday.
Major U.S. indexes had a bad day as well. The S&P 500 lost 0.84% and the Dow Jones Industrial Average ended 0.34% lower — despite rising as much as 0.5% earlier in the session to touch a new record.
The tech-heavy Nasdaq Composite slumped 1.43%, weighed by software stocks, such as ServiceNow and Salesforce , with both tumbling nearly 7% — investors appear to be factoring in that artificial intelligence could diminish the value of those companies.
Asset firms with significant private credit market holdings, such as Blue Owl , Ares Management and KKR , also sank. The software industry makes up around 20% of private loans from direct lenders, according to iCapital, an alternative investment company.
There was at least one positive development overnight. U.S. President Donald Trump signed into law a bill to fund the federal government, which had been on a brief shutdown since Saturday morning.
For the day ahead, look out for PMI releases from Japan, China and India.