Wall Street Today: Nasdaq Sheds 2%+ and DJIA Loses 800 Points as TSLA, NVDA and other Big Techs Sink
The Nasdaq Composite sank more than 2% Thursday, while the Dow-30 pulled back some 800 points from record territory as Big Techs like Tesla and Nvidia extended their recent slides, with banking and other sectors joining in the declines.
The tech-heavy $Nasdaq Composite Index (.IXIC.US)$ led the way lower, shedding 536.10 points (2.3%) to a 22,870.36 finish. The $S&P 500 Index (.SPX.US)$ followed closely behind, losing 113.43 ticks (1.7%) to a 6,737.49 ending.
Meanwhile, the $Dow Jones Industrial Average (.DJI.US)$ gave up 797.60 points (1.7%) to 47,457.22, reversing gains Wednesday that pushed the index to record intraday and closing highs.
All three indexes fell as Big Techs extended a week-long run of choppy trading, often rising one day and falling the next while grinding lower over time.
The sell-off began last week after $Palantir (PLTR.US)$ and $Uber Technologies (UBER.US)$ sank despite reporting better-than-expected quarterly earnings. That had some investors fearing that Big Techs had finally gotten too expensive to attract new buyers.
Thursday's large-cap tech decliners included $SanDisk Corp (SNDK.US)$ (down 14%), $CoreWeave (CRWV.US)$ (8.3% lower), $Super Micro Computer (SMCI.US)$ (7.4% weaker), $Tesla (TSLA.US)$(6.6% weaker), $Palantir (PLTR.US)$ (off 6.5%), $NEBIUS (NBIS.US)$ (which shed 6.1%) and $NVIDIA (NVDA.US)$ (3.6% softer).
However, whereas stocks in the financial sector and other areas helped the Dow-30 hit records Wednesday despite Big Tech's woes, many non-techs saw their shares decline Thursday as well.
Non-tech Dow components to sink on Thursday included $Goldman Sachs (GS.US)$ (4% weaker), $Caterpillar (CAT.US)$ (3.4% lower) and $JPMorgan (JPM.US)$ (off 3.4%). All three had risen on Wednesday, helping to push the DJIA into record territory.
Adding to the DJIA's woes, Dow member $Disney (DIS.US)$ shed 7.8% following poorly received earnings.
Macro
Stocks fell even though the 43-day-old U.S. government shutdown came to an end Wednesday night when Congress and U.S. President Donald Trump approved a measure to temporarily fund all operations.
Federal workers returned to their jobs on Thursday, which should mean the government will soon resume releasing the official economic data that Wall Street and the Federal Reserve rely on.
However, the White House said Wednesday that the government might never release a key October inflation report that statisticians didn't compile because of the shutdown.
Officials also initially said they'd skip the October employment-situations report, but clarified on Thursday that they'll release a key part of that study: monthly nonfarm payrolls numbers. Still, statisticians won't compile an October unemployment rate.
Federal Reserve Chair Jerome Powell said after the bank's Oct. 29 monetary-policy meeting that a lack of official data might make Fed members less likely to cut their benchmark Federal Funds rate at the group's December session. The bank closely monitors U.S. inflation and jobs numbers when deciding whether to modify the Fed Funds rate or leave it as is.
The CME FedWatch tool estimated the odds of a 25-point rate at the Fed's December meeting at just 49.6% as of Thursday afternoon, down from a 95.5% probability a month ago.
Meanwhile, cryptocurrencies fell as part of the same "risk-off" mood that appeared to take Big Techs down.
$Ethereum (ETH.CC)$ gave up 6.2% to $3,193.66 as of shortly after 3:30 p.m. ET, while $Bitcoin (BTC.CC)$ sank 2.8% to $98,729.99.
Moo-vers
Thursday's Big Tech sell-off included the "Magnificent Seven" stocks, all of which ended the session lower except for $Meta Platforms (META.US)$, which inched up 0.1%.
Among other Mag-7 names, $Tesla (TSLA.US)$ led the decliners with its previously mentioned 6.6% decline, while $NVIDIA (NVDA.US)$ gave back its aforementioned 3.6%.
As for the other Mag-7 stocks, $Alphabet-A (GOOGL.US)$ shed 2.8%, $Amazon (AMZN.US)$ dropped 2.7%, $Microsoft (MSFT.US)$ shed 1.5% and $Apple (AAPL.US)$ eased 0.2%.
Elsewhere on Wall Street, other noteworthy percentage decliners included:
-- Crypto-related stocks, which sank on a combination of cryptocurrencies' declines and Wall Street's risk-off sentiment. Losers included $Bitfarms (BITF.US)$ (down 18%), $IREN Ltd (IREN.US)$ (12.7% lower), $Applied Digital (APLD.US)$ (which shed 12.7%), $Strive (ASST.US)$ (which gave up 10.9%), $Bitmine Immersion Technologies (BMNR.US)$ (9.9% softer) and $Coinbase (COIN.US)$ (off 6.9%).
-- Quantum-computing stocks, which fell as part of tech's general sell-off. Stocks that pulled back included $D-Wave Quantum (QBTS.US)$ (11.4% softer), $Rigetti Computing (RGTI.US)$ (11% weaker), $IonQ Inc (IONQ.US)$ (off 10.5%) and $Quantum Computing (QUBT.US)$ (which shed 10%).
-- $BigBear.ai Holdings (BBAI.US)$, off 11.6%. The AI-powered national-security-software stock sank amid tech's weakness, coupled with consolidation after BigBear rose 25.6% over the past two sessions on well-received quarterly results.
Meanwhile, Thursday's major percentage gainers included:
-- $Ondas Holdings (ONDS.US)$, up 19.1%. The drone-and-wireless firm rose on well-received quarterly results.
-- $Cisco (CSCO.US)$, better by 4.4%. The networking-equipment giant bucked the tech sector's downtrend and rallied following quarterly earnings and revenue beats.
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors' financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Jerry Kronenberg
Director of Financial Content
Former top editor at Seeking Alpha, Fidelity.com, TheStreet.com and UPI.
4579
Followers
3000
Following
10K
Visitors
Follow
Market Insights
Hot Topics
Trump's 'Taco deal' sparks market rebound : Market rebound sustainable ?
1. If tariffs pause, which sectors benefit first? 2. Trump's "threat-compromise" cycle normalizes—how to hedge across assets?
Moo Options Explorer
Apr 7 17:28
Weekly roundup: Tariff turmoil and recession fears dominate
75497290 : Now the margin calls begin ...
Tan Chin Seng klang : palantir is the best stocks in the world
Nick Passarella : This all seem to start when Mr Michael Burry had to run his mouth take a large short position and freak the market out!
75067303 : There is a bottomless pit beneath the basement.
Chan Hin Pui :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Jimmy 1133 Nick Passarella : part of the game - market manipulation, market correction or sector rotation.. whatever it is.. tech stock will always rebound faster than other sector
Jimmy 1133 Tan Chin Seng klang : alot others too..
Jimmy 1133 75497290 : trigger stop loss. wipe out the liquidity and be the bottom fishers
Usaer : Buying US tech stocks that are supposedly part of a pyramid scheme-like artificial intelligence scam is destined to result in losses!