Dow Jones Breaks Support After 4th Losing Day Pre Nvidia’s Earnings, Nasdaq Index Follows
Concerns that market confidence is declining more quickly than anticipated grew as the Dow DJIA and Nasdaq index limped toward the close...
Quick overview
- Major U.S. indices closed lower after a failed midday rebound, indicating deteriorating market sentiment.
- All three major indices finished in negative territory, with significant selling pressure from large-cap tech stocks.
- The Dow broke below its 50-day SMA for the first time since May, raising concerns about further downside risk.
- Investor nerves are heightened ahead of Nvidia's earnings report, with skepticism overshadowing optimism in the tech sector.
Live DOW Chart
Concerns that market confidence is declining more quickly than anticipated grew as the Dow DJIA and Nasdaq index limped toward the close following an unsuccessful midday comeback.
Indices End Lower as Brief Rally Fizzles Out
The U.S. equity market delivered another discouraging performance, with all three major indices finishing solidly in negative territory. Despite an attempted midday rebound, none of the benchmarks managed to trade in the green at any point, highlighting just how fragile investor sentiment has become.
The session opened weak and stayed that way: every recovery attempt was met with selling pressure, particularly from large-cap tech names, which continued to act as the market’s heaviest drag. The persistent downside bias signals that investors are increasingly uncomfortable with stretched valuations and the sudden wave of AI-sector downgrades.
Intraday Damage Still Evident Despite Off-Low Close
While the indices did manage to bounce off their worst levels of the day, the intraday lows paint a much harsher picture. Even with the modest rebound off the troughs, the broader trend remains firmly negative. The Dow delivered an especially worrying technical signal:
It broke below its 50-day SMA (yellow) for the first time since May, exposing the index to further downside.
The next meaningful support sits near the 100-day SMA (green) — roughly 500 points lower — raising the possibility of a deeper slide if selling persists.
Closing Levels for Major U.S. Stock Indices
Dow Jones Industrial Average
- Closed: 46,091.74
- Daily Change: –498.50 points (–1.07%)
- Session High: Still negative at –207.32 points, showing persistent selling throughout the session.
- Market Tone: Dow components were under steady pressure as risk-off sentiment dominated, with industrials and financials dragging the index lower.
S&P 500 Index
- Closed: 6,617.32
- Daily Change: –55.09 points (–0.83%)
- Session High: Brief intraday improvement, but still –5.70 points at the peak, signalling a market unable to gain upward traction.
- Market Tone: Broad-sector weakness persisted, with tech, consumer discretionary, and energy shares contributing to the pullback.
Nasdaq Composite
- Closed: 22,432.85
- Daily Change: –275.23 points (–1.21%)
- Session High: Even the best levels of the day showed a decline of –65.06 points, illustrating sustained pressure on growth and AI-linked stocks.
- Market Tone: Heaviest losses came from large-cap tech and semiconductor names, which continued to face valuation concerns ahead of major earnings.
Tech Continues to Unravel Ahead of Nvidia Earnings
The pressure on the tech sector intensified as Nvidia prepares to announce earnings tomorrow after the close. Investor nerves are clearly visible as Nvidia (NVDA) dropped –$5.24 (–2.81%) to $181.37, continuing its multi-session slide.
AI-linked stocks broadly suffered as the optimism that fueled recent rallies continues to deteriorate.A string of analyst downgrades targeting the AI sector has accelerated the shift toward a risk-off environment. With such elevated expectations, Nvidia’s report could become a pivotal moment for market direction — but for now, skepticism is overshadowing hope.
Other Major Losers Today:
- Home Depot: −6.00%
- Western Digital: −5.94%
- Micron: −5.56%
- Amazon.com: −4.43%
- AMD: −4.31%
- Box Inc: −3.71%
- CrowdStrike Holdings: −3.04%
- Arm: −2.97%
- SoFi Technologies: −2.96%
- Deutsche Bank AG: −2.95%
- Lam Research: −2.87%
- NVIDIA: −2.80%
- Microsoft: −2.70%
- Cadence Design: −2.60%
- Boston Scientific: −2.50%
- IBM: −2.42%
- Palantir: −2.29%
- Fortinet: −2.17%
- Block: −2.12%
Conclusion: Risk Appetite Is Eroding as Markets Lose Their Grip
The market’s inability to maintain even a mild midday bounce illustrates a troubling loss of confidence. All three major indices stayed underwater for the entire session, reinforcing the view that sellers are firmly in control. Weakness in tech, fading momentum, and growing fears surrounding AI profitability continue to weigh heavily on sentiment.
As the indices begin testing critical support levels, and with major earnings looming, the market appears increasingly vulnerable. Without a strong catalyst to shift mood, choppiness and downside risk may dominate in the near term, especially if Nvidia’s earnings fail to impress.
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