05:11 PM EST, 11/18/2025 (MT Newswires) -- US equity indexes fell on Tuesday as declines in Microsoft ( MSFT ) and Amazon.com ( AMZN ) exacerbated the selloff in high-growth sectors, adding to unease ahead of the quarterly results from the world's most valuable company.

The Nasdaq Composite dropped 1.2% to 22,432.85, with the S&P 500 down 0.8% to 6,617.32 and the Dow Jones Industrial Average 1.1% lower at 46,091.74.

The consumer discretionary sector fell 2.5% and technology slid 1.7% as exposure to high-growth firms was reduced amid mounting valuation concerns. Picture-perfect results are expected from Nvidia ( NVDA ) , the AI benchmark with a trailing price-to-earnings ratio of roughly 53 times, on Wednesday when the $4.42 trillion market-cap technology giant will report.

Nvidia ( NVDA ) investors will likely be eyeing macroeconomic issues such as a difficult financing environment and capital expenditure concerns at some hyperscalers when the company releases its Q3 results, BofA Securities said in a note emailed on Monday. Investors will focus on supply constraints and rising component costs, which may lower Nvidia's ( NVDA ) gross margin.

As of Monday's close, the Chicago Board of Exchange's put/call ratio rose to 0.76, the highest since July, implying investors have increasingly sought protection from potential market declines. Put options are bought as a shield against volatility.

The CBOE Volatility Index (VIX), also known as a fear gauge, surged 10% to 24.69 late Tuesday, the highest since mid-October.

Meanwhile, Microsoft ( MSFT ) and Amazon.com ( AMZN ) fell at least 2.6% each, among the worst performers on the S&P 500 and the Nasdaq, after the European Commission launched multiple investigations into the duo's cloud computing services. Both index heavyweights led decliners in the so-called Magnificent-7 stocks on Tuesday.

In economic news, new orders for US factory goods, excluding a 7.9% increase in transportation orders, rose 0.1% after a 0.5% gain in July. Factory shipments slipped 0.1%, while unfilled orders rose 0.6%.

The National Association of Home Builders' monthly housing market index climbed to 38 in November from 37 in October, compared with expectations for no change in a survey compiled by Bloomberg. The index was still below the 46 print a year earlier.

"While lower mortgage rates are a positive development for affordability conditions, many buyers remain hesitant because of the recent record-long government shutdown and concerns over job security and inflation," said NAHB Chairman Buddy Hughes. "More builders are using incentives to get deals closed, including lowering prices, but many potential buyers still remain on the fence."

A weekly measure of private payrolls from Automatic Data Processing, or ADP, showed a preliminary average decrease of 2,500 jobs in the four weeks ending on Nov. 1. This is the third national employment weekly report published by ADP.

Most Treasury yields fell, with the two-year down 3.1 basis points to 3.58% and the 10-year lower by 1.6 basis points to 4.12%.

While the probability of a 25-basis-point cut in interest rates next month rose to about 51% late Tuesday from 42% Monday, the odds are nowhere near the 94% likelihood a month ago in favor of the third consecutive easing by the Federal Reserve, according to the CME FedWatch tool. Higher rates tend to be detrimental for high-growth areas such as technology and consumer discretionary.