Associated Press Business Writer Stanchion
NEW YORK (AP) — The drops of Nvidia, Tesla and other former superstars fell below Wall Street on Wednesday.
The S&P 500 fell 0.8% in noon trading. The Dow Jones industrial average lost an early gain of 230 points, down 37 (0.1%) just before noon. Big Tech’s weakness was Nasdaq composites heading towards a 1.5% market-leading loss.
The dominant stock group known as the “magnificent Seven” is at the heart of recent sales in the US stock market, hitting an all-time high of 10% earlier this month for its first “fix” since 2023.
Nvidia has dropped by 5.2% to 14.8% of the losses for younger generations so far. This was the heaviest weight on the S&P 500. Other AI-related stocks are weak, such as server builder super microcomputers that have dropped 7.3%, and utility companies that want to electrify their vast AI data centers.
Tesla also faces additional challenges, including political rage towards CEO Elon Musk, which will hurt sales from electric vehicle manufacturers. Tesla has extended its 2025 loss to 32.1% down 4.8%.
The US stock market has been somewhat stable since falling to the correction, with the S&P 500 returning within 7% of its record. But strategists along Wall Street have warned that the Sharp Swing is likely not finished yet, and that US tariffs are scheduled to arrive early next month. Even if they are less painful for the global economy than they are feared, all talk about tariffs has already exacerbated confidence among US consumers and businesses.
So far, the economy and job markets appear to remain solid despite the mood getting worse, and economists are looking for a signal that the blow to confidence is being translated into the real pain of the economy. Another report on Wednesday morning gave little clarity.
Orders for machinery, planes and other long-term manufactured products grew unexpectedly last month as economists were predicting contractions. However, a subset of data that is considered an indicator of investment by companies that exclude aircraft and defense products has led to growth and contraction. It could be a signal that companies are keeping their spending down to see how tariffs unfold.
The Treasury will bring yields in the bond market. This often revolves up and down with expectations for the strength of the US economy following the report. The 2010 Treasury yield reached 4.33% from 4.31% on Tuesday late.
On Wall Street, GameStop jumped 14.5% after video game retailers reported better results than analysts expected. He also said that he will start investing part of the Treasury in Bitcoin.
Dollar Tree rose 4.2% after saying it was selling to one pair of private equity companies 10 years after attempting to acquire bargain chain fit. Dollar Tree reported higher profits in the recent quarter than analysts expected.
Syntas rose 6.9% after providers of work uniforms, toilet supplies and other equipment reported higher profits in the recent quarter than analysts expected.
Overseas stock markets had mixed indexes in most parts of Europe and Asia. The FTSE 100 rose 0.5% in London after reporting that UK inflation has improved by touching and improving than economists had expected.
AP business writers Matt Ott and Elaine Kurtenbach contributed.
Original issue: March 26, 2025, 11:19am Edit
