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Tech stock sell-off causes Nasdaq to plummet 1.2%... Big techs such as Nvidia and Amazon also decline.
Source: TokenPost Original Title: [U.S. Stock Market News Briefing] Nasdaq Plummets 1.2% Due to Sell-off in Tech Stocks… Big Techs like Nvidia and Amazon Follow Suit in Weakness Original Link: https://www.tokenpost.kr/news/market/305338 NVIDIA-led tech stocks plummet
NVIDIA closed down 5.2% at $181.36, leading the Nasdaq decline. Recently, concerns over the valuation of AI-related stocks have increased, dampening investor sentiment. Amazon( -4.4%), Microsoft( -2.7%), Meta( -0.7%) and other major big tech companies also showed weakness, reflecting a decline across technology stocks.
Global stock market overall weakness
In addition to the United States, European and Asian stock markets also recorded a simultaneous decline. The Dow Jones Industrial Average fell by 1.1% to 46,091.74, while the S&P 500 recorded a 0.8% drop to 6,617.32. Uncertainty surrounding the Fed's interest rate policy is weakening investor sentiment, and the yield on 10-year Treasury bonds has decreased to 4.12%.
Small-cap Relative Strength
While large tech stocks are undergoing a correction, the Russell 2000 index rose by 0.3%, indicating relative strength in small-cap stocks. This is interpreted as a rotation where investors are moving towards undervalued small-cap stocks instead of the highly valued large growth stocks.
Cryptocurrencies are also on a downward trend
Bitcoin fell by more than 3%, and the sell-off spread across risk assets along with the decline of tech stocks. Netflix(-3.4%) and Tesla(-1.9%) also declined, joining the overall weak trend in tech stocks. Experts analyzed that “while short-term adjustments may continue, the long-term growth expectations for the AI industry remain intact.”