S&P 500 Edging Back Up after Sharp Drop Tuesday
Alphabet stock is moving upward quickly while the S&P 500 is slowly recovering after Tuesday's sharp decline.
Quick overview
- The stock market experienced a decline on Tuesday due to ongoing tariff concerns, but the S&P 500 showed signs of recovery in early Wednesday trading.
- Alphabet's stock rose significantly after a federal judge ruled that the company would not need to sell off Chrome amid antitrust allegations.
- While the Dow Jones remained stable, the Nasdaq Composite continued to decline, reflecting mixed performance among tech stocks.
- Nvidia received approval to sell H20 chips to China, potentially boosting its performance in the upcoming quarter.
The stock market fell Tuesday as tariff concerns continue to stifle the market, but the S&P 500 ticked upward in early Wednesday morning trading.
The S&P 500 is showing some signs of recovery after Tuesday’s severe decline. That index fell 1.2% but started to recover before the end of trading for the day. It appears that the index is still making some minor upward progress in early trading for Wednesday, but it is unlikely that tariff fears will subside enough for the market to climb back to its Friday level of 6,456 points.
The Dow Jones is showing little sign of change after its drop on Tuesday, the index is now mostly holding to its same level. The Nasdaq Composite, on the other hand, is down another 0.82% in early morning trading, continuing Tuesday’s drop.
Tech Stocks Are a Mixed Bag
One of the bright lights during Tuesday’s mostly bearish trading session was Alphabet (GOOGL). This stock climbed on Tuesday and is now up more than 6% in premarket trading for Wednesday. There was concern that the giant parent company of Google would have to sell off Chrome, but a federal judge has just ruled that this action will not be necessary. The company has been battling antitrust allegations and may come out on the other side mostly unscathed.
The ruling determined that they could also keep Android, but the company will have to share data as part of the decision. The case is not over yet, and U.S. antitrust enforcers are currently deciding what the next step in the five-year case should be, according to Assistant Attorney General Gail Slater.
A number of major tech companies declined on Tuesday but are starting to make back lost ground on Wednesday. Among those are Microsoft (MSFT), which is down 0.47% and Meta Platforms (META), which is up 0.65%. The tariff worries are holding much of the market back, and one of the fears is that they will disproportionately hurt tech companies.
However, there has been good news for Nvidia (NVDA) lately. The company scored a major win after they received permission from the U.S. government to be able to sell H20 chips to China. Previously, sales of those high end AI chips were banned when it comes to sales between the U.S. and China, but with that opportunity now available, Nvidia has the potential to perform even better in the current quarter than they did in the last quarter.
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