US stocks ended lower with the S&P 500 index recording a fourth straight day of losses.
The fall was due to concerns about the high valuation of major tech stocks and weak outlook from Home Depot, which further weighed on market sentiment.
Home Depot shares fell 6% after the home improvement company issued a disappointing annual profit forecast and missed its quarterly revenue expectations.
The Dow Jones Industrial Average fell 1.07% to 46,091.74 points, the S&P 500 fell 0.83% to 6,617.32 points, while the tech-focused Nasdaq plunged 1.21% to 22,432.85 points.
Investors remained cautious ahead of Nvidia's quarterly results, which are scheduled to be released after the market close on Wednesday.
Even as the US earnings season nears its end, Nvidia's report has been in the spotlight amid concerns about market gains driven by the artificial intelligence (AI) sector. Nvidia shares fell 2.8%.
Meanwhile, September NFP jobs data is due on Thursday and is expected to provide a clearer picture of labor market conditions.
The data is on investors' radar after its release was delayed by the longest government shutdown in history.
Yesterday's private sector jobs report showed an increase in the number of Americans receiving unemployment benefits from mid-September to mid-October, indicating a slight slowdown in the labor market.
US stock market volume was $18.66 billion, compared to a 20-day average of $20.2 billion.
