Stock market today: Dow, S&P 500, Nasdaq sink as Nvidia, Tesla lead Big Tech slide

Published On Dec 27, 2024, 11:00 AM

The U.S. stock market is experiencing declines with the S&P 500 down 1.5%, the Nasdaq Composite down 2.2%, and the Dow Jones Industrial Average down 1%. Major tech stocks like Nvidia and Tesla are leading the drop as investors cash in profits following a strong year. The losses reflect a market reevaluation of these stocks' valuations. Other major players in the tech sector such as Amazon and Alphabet also showed declines. Investors are shifting their focus to the Federal Reserve's upcoming interest rate decisions and the implications of any political changes as the new year approaches.

Stock Forecasts

TSLA

Negative

Tech stocks, which have risen significantly in value this year, are currently facing a pullback as profit-taking occurs. The volatility in the market is driven by a reconsideration of growth expectations in light of higher interest rates and geopolitical uncertainties. Given that the Fed is likely to delay rate cuts, which could affect growth-sensitive sectors, further declines in tech stocks may occur.

NVDA

Negative

Nvidia's recent performance suggests that after a substantial price run-up, a market correction may be in order. Investors may opt to take profits, leading to more selling pressure in the near term due to the larger market trends against tech.

AMZN

Negative

With interest rates remaining high and the potential for a broader market correction, sectors that have seen rapid gains might face headwinds. This could affect investor sentiment towards growth stocks, particularly in technology, leading to further declines.

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