US Stock Market Mixed: Nasdaq Falls Amid Tech Struggles

Nasdaq Declines as Nvidia and Tesla Face Challenges

On Wednesday, US stocks displayed mixed performance due to subdued trading on Wall Street. While many stocks climbed, major tech stocks, such as Nvidia and Tesla, faced ongoing challenges, causing the Nasdaq to decline by 1.2%. The S&P 500 dipped 0.4%, potentially heading for a second quiet day in a row. The Dow Jones Industrial Average increased by 201 points, or 0.5%, as of 10:45 a.m. Eastern Time.

Big Tech Stocks Experience Heightened Volatility

• Big Tech stocks, crucial to the US stock market’s recent sell-off, are experiencing heightened volatility.
• Earlier this month, the S&P 500 dropped 10% from its all-time high, marking its first “correction” since 2023.
• Big Tech’s rapid growth, particularly during the AI boom, led to concerns that their valuations surpassed profits, contributing to the recent downturn.

Nvidia and Tesla Face Hurdles

Nvidia suffered a 4.7% loss, bringing its yearly decline to 14.4%, making it the biggest drag on the S&P 500. Tesla also faced challenges, falling 4.1% and extending its 2025 loss to 31.6%. The electric-vehicle manufacturer is dealing with both internal issues and external challenges, including political backlash against CEO Elon Musk.

US Stock Market Regains Stability After Correction

• Despite setbacks, the US stock market has regained some stability after its correction.
• The S&P 500 is now within 6.5% of its record high, but Wall Street strategists warn that volatility may continue.
• A set of US tariffs set to take effect next month is causing uncertainty, dampening consumer and business confidence.

Economic Indicators and Positive Developments

While the US economy and job market have shown resilience, economists are closely monitoring signs that the hit to confidence is affecting broader economic activity. A report released Wednesday morning revealed unexpected growth in orders for machinery, airplanes, and other durable goods last month, defying expectations of a contraction.

• GameStop surged 13.1% after reporting better-than-expected quarterly results and announcing plans to invest part of its treasury in bitcoin.
• Dollar Tree saw a 7.6% increase after announcing it would sell Family Dollar to two private equity firms for $1 billion and posting stronger-than-expected profits for the latest quarter.
• Cintas rose 8.1% after the work uniform supplier reported better-than-expected profits.

Mixed Performance in Overseas Stock Markets

Overseas, stock markets in Europe and Asia displayed mixed performance. The FTSE 100 in London rose 0.3% following a report showing that UK inflation improved slightly more than expected.