Tech Stocks Bring Nasdaq Index Down

On Tuesday, we saw major stock declines from Nvidia (NVDA) and Tesla (TSLA), falling 6.2% and 4%, respectively and causing the Nasdaq Composite to drop 1.89%.

Nvidia stock is down again.

The S&P 500 and Dow Jones indices pulled ahead on Thursday morning, with gains of 0.16% and 0.25%, respectively, leaving the Nasdaq Composite with an early morning drop of 0.06% ahead of a day of closed markets for mourning after the loss of former US President Jimmy Carter.

The drop was blamed on sharp decline from Tesla and Nvidia, which had been doing well recently. Last week, Tesla stock rose from $375 to $418 in a single day. It has been in slight decline since then but held onto much of its gains.

Nvidia stock was rising spectacularly earlier in the week after the company unveiled its plans for 2025. The declines are blamed partially on new economic data from the Institute for Supply Management that shows inflation may be hanging on more tightly than previously thought.

Investors will have all of Thursday to digest the new inflation data, and that could lead to a cold, muted day of trading on Friday as the week closes off.

Nvidia was supposed to reveal some exciting news to shareholders and customers during CES, but while rumors swirled as to what that would be, the actual announcement was not as exciting. The company revealed some new graphics processing units that will work for gaming and for personal computers. There is some excellent potential there, but it is so far unrealized, and investor interest has waned compared to Monday’s and Tuesday’s hype.

How the Rest of the Market Looks

Inflation data will hurt the stock market for the short term, but a recovery is expected in the coming days. As we draw near to Donald Trump’s inauguration, investor excitement should build around his business ideas.

Meta Platforms (META) is looking to bring back more users onto Facebook as it gets rid of its fact-checking service. This opens the door for more posts about gender and politics to make their way onto the platform, which could entice people back who had left after they felt that their freedom of speech was being stifled and their political views were being checked. Compared to some of the other tech stocks, Meta has not dropped as significantly over the last couple of days, and it was down just 0.28% as the markets closed on Wednesday.

Wal-Mart (WMT) stock gained 1.09% on Wednesday despite a rough week otherwise. The retailer tends to do well when inflation is high because consumers will go where the deals are to save money.

 

 

 

 

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ABOUT THE AUTHOR See More
Timothy St. John
Timothy St. John
Financial Writer - European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.
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