Nvidia Stock 5% Lower, Tesla Stock 3% Down After Miss in Earnings and Neutral FED

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MARKETS TREND

On Tuesday stock markets recovered from Monday’s crash, but they resumed the decline again today with the Nvidia stock ending 5% lower, while Tesla stock ended 3.2% down. Other risk assets also finished the day lower despite a neutral FED meeting.

Nvidia's chips look so expensive now, stocks look cheap

U.S. stocks lost momentum early in the session as Nvidia’s 6.5% decline pulled the market lower. Despite its impressive rebound yesterday, pressure persists, with the stock exhibiting volatility more typical of small-cap firms than the largest company in the world. Nvidia’s stronger recovery compared to other semiconductor stocks could have signaled further instability, and today’s renewed selling suggests the sector remains under pressure.

Nvidia Chart Daily – The 100 SMA Continues to Hold As SupportChart NVDAm, D1, 2025.01.29 20:58 UTC, Exness Technologies Ltd, MetaTrader 5, Real

Adding to concerns, reports indicate that the White House administration may impose stricter export controls on Nvidia’s advanced chips, further weighing on the company and the broader tech sector, including Tesla. Meanwhile, investors are bracing for major earnings reports from Tesla, Microsoft, and Meta, which could significantly influence market direction. Tesla’s earnings report leaned on the soft side, as shown below, with the stock ending the day more than 3% lower.

Tesla’s Q2 2025 earnings report delivered mixed results, with earnings and revenue missing expectations, while free cash flow surpassed forecasts. The company struggled to achieve its anticipated cost reductions, which impacted profitability and contributed to a 3.17% drop in Tesla’s stock price after hours. Investors will likely focus on Tesla’s future cost-cutting strategies, production efficiency, and demand trends as competition in the EV market intensifies.

Tesla (TSLA) Q2 2025 Earnings Report

  • Mixed results with earnings and revenue missing expectations, but free cash flow exceeding forecasts.
  • Adjusted EPS: $0.73 (miss; expected $0.75).
  • Revenue: $25.71B (miss; expected $27.21B).
  • Free Cash Flow: $2.03B (beat; expected $1.75B).
  • Key takeaway: Cost reductions fell short of prior expectations, contributing to weaker profitability.
  • Stock reaction: Tesla shares dropped -3.17% (-$12.31) to $375.83 in after-hours trading.
  • Market sentiment: Investors reacted negatively to revenue and earnings misses, despite stronger free cash flow.
  • Outlook: Focus remains on cost-cutting measures, production efficiency, and future demand trends amid a competitive EV landscape.

Tesla Stock Chart Daily – MAs Have Turned Into ResistanceChart TSLAm, D1, 2025.01.30 00:13 UTC, Exness Technologies Ltd, MetaTrader 5, Real

Meanwhile, U.S. equity markets ended the session lower, with tech and growth stocks leading declines as the Nasdaq fell 0.5%. Broader market sentiment remained cautious, influenced by rising bond yields, shifting interest rate expectations, and geopolitical uncertainties. Defensive sectors showed relative resilience, but the stronger U.S. dollar added pressure on multinational corporations, contributing to risk-off sentiment. Looking ahead, investors will closely monitor macroeconomic data and central bank policy signals, which could dictate market direction in the coming weeks.

Closing Levels for Main US Indices

  • Nasdaq Composite: Fell 100 points (-0.5%) to 19,632, underperforming as tech stocks faced selling pressure.
  • Russell 2000: Dropped 6 points (-0.3%) to 2,283, reflecting weakness in small-cap stocks.
  • Dow Jones Industrial Average: Declined 137 points (-0.3%) to 44,713, weighed down by cyclical sectors.
  • S&P 500: Lost 28 points (-0.5%) to 6,039, with broad-based losses across major sectors.

The Nasdaq remains down 1.2%, despite a temporary recovery following Fed Chair Jerome Powell’s press conference. On the monetary policy front, the market had assigned a 22% probability of a rate cut in March, but Powell’s “no urgency” comments have tempered those expectations. This shift in sentiment has added another layer of uncertainty, as investors reassess the likelihood of near-term Fed action.

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Skerdian Meta
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Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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