US Market Recap: Three Indexes Slid on Tech Sector Slump

 

 

By the US market's close, the S&P 500 index fell 1.11% to 5,909.03 points. The NASDAQ Composite index slid 1.89% to 19,489.68 points. The Dow Jones index fell 0.42% to 42,528.36 points.

 

The U.S. Labor Department reported an unexpected increase in job openings in November. Service sector activity in December also rose. The two stronger-than-expected employment figures sparked concerns about ongoing inflation. Persistent inflationary pressures increased the likelihood of the Fed decelerating monetary easing.

 

This, coupled with Fed officials reiterating their hawkish stance over the weekend, further dampened investor sentiment. Investors focus on December's nonfarm payrolls data, due on Friday, for more clues on interest rates.

 

Furthermore, tech heavyweight Nvidia Corporation $NVDA dampened the tech sector.

 

Nvidia was the worst-performing tech stock in the US market on Tuesday, slipping from all-time highs to close down 6.22%.

 

The company's CEO Jensen Huang, revealed new products at the Consumer Electronics Show in Las Vegas on Monday, including a new line of graphics chips. Huang also said that the Blackwell AI chip is in full production.

 

Although information indicated NVIDIA's long-term prospects, some analysts noted that it would insignificantly stimulate the company's near-term gains. Nvidia's stock price had hit an all-time high prior to Huang's remarks, so much of Huang's content seemed to have factored into the stock price as well.

 

Other major tech stocks also retreated, with Apple Inc $AAPL down 1.14% after receiving a sell rating for the second time in three months. Tesla $TSLA plunged 4.06% after Bank of America downgraded it on concerns about its overvaluation and difficulties in achieving its AI goals.

 

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