Nasdaq Down as Top Tech Stocks Nvidia and Navitas Suffer Decline
Stocks are in decline as the Nasdaq takes a big hit to tis tech stocks that had recently performed very well.
Quick overview
- The Nasdaq Composite fell nearly 1.5% on Tuesday and continues to decline as trading begins on Wednesday.
- Nvidia and Navitas, despite recent strong performances, are experiencing downward trends due to concerns over the Federal Reserve meeting and the AI market's future.
- Investors are worried about the impact of government policies on the AI sector, particularly regarding competition with China.
- Major stock indices, including the Dow Jones and S&P 500, are seeing declines as investors prepare for potential negative outcomes from the upcoming Federal Reserve meeting.
The Nasdaq Composite dropped close to 1.5% on Tuesday and continues to fall as Wednesday trading has begun, pulled down by a poor performance of some of its top stocks.
Nvidia (NVDA) and Navitas (NVTS) have performed well recently but are trending down on Wednesday due to fears over the Federal Reserve meeting as well as concerns about the longevity of the AI market.
This is the niche most likely to be affected by President Donald Trump’s trade policies because it is so vital for the technological advancement of China and the United States. If the U.S. does not corner the market on AI technology, then they will be outperformed and outmaneuvered by their trade partners and rivals. Some of the restrictions on AI products have been lifted, and Nvidia can now sell its high end H20 chips to China without the very high fees that were previously attached, but the United States is calling for investment in America first from its tech companies.
With the government dipping its hands into business affairs in new ways, investors are concerned about what the future of the AI market and related fields is going to look like. Will the government have a say in what happens with AI and who gets to profit from it?
The Stock Market Is in Decline
Most major stocks shifted downward Tuesday and continued to slip on Wednesday heading into Thursday’s Federal Reserve meeting. With the chair Jerome Powell expecting to be replaced and anticipation high that the Fed will not issue interest rate cuts, the meeting could be dire for the market. Investors are already preparing for the worst and selling off stocks quickly.
The Dow Jones dropped 0.13% on Wednesday after ending Tuesday slightly down. The S&P 500 also decreased, losing another 0.83% on Wednesday morning. Across the board, stocks are down, with tech stocks suffering the biggest blow. Investors should expect further decline as the day progresses with heightened selling up to the Thursday Fed meeting.
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