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T&G Market Recap: Fed Rate Decision & Market Updates: Nasdaq Slides as Nvidia Drags Tech Lower ๐Ÿ“‰๐Ÿ’ป

T&G Market Recap: Fed Rate Decision & Market Updates: Nasdaq Slides as Nvidia Drags Tech Lower ๐Ÿ“‰๐Ÿ’ป

Tech stocks take a hit as Nvidia faces pressure, while the Fed leaves rates unchanged, and earnings season heats up ๐Ÿ”๐Ÿ“Š

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Ben The Bull
Jan 29, 2025
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T&Gโ€™s Substack
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T&G Market Recap: Fed Rate Decision & Market Updates: Nasdaq Slides as Nvidia Drags Tech Lower ๐Ÿ“‰๐Ÿ’ป
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Stock Market Recap: Tech Stocks Lead Losses After Fed Decision ๐Ÿ’ผ

On Wednesday, tech stocks led the broader market lower following the Federal Reserve's interest rate decision. The Fed kept rates unchanged in a range of 4.25%-4.5%, as expected, but markets were largely focused on the shifting language in the Fedโ€™s statement regarding inflation and economic conditions.

  • Nasdaq fell 0.5%, retracing some of the gains from Tuesdayโ€™s rebound.

  • S&P 500 dropped 0.47%, while the Dow Jones lost 0.31%.

The Fedโ€™s statement removed the phrase about progress toward its 2% inflation target, instead stating, โ€œInflation remains somewhat elevated.โ€ This subtle shift in language raised concerns among traders, but Fed Chair Jerome Powell pushed back on the notion that it signaled a hawkish turn, calling it a โ€œlanguage cleanup.โ€ His comments helped markets bounce off their lows.

Nvidia Under Pressure: Report of Potential Curbs on Exports to China ๐Ÿ“‰๐Ÿ”’

Nvidia (NVDA) remained under significant pressure on Wednesday, falling by over 4%, continuing its struggle after a 17% drop on Monday. Here's what's weighing on Nvidia:

  • Nvidiaโ€™s fall was attributed to a Bloomberg report stating that the Trump administration may impose additional curbs on Nvidiaโ€™s chip exports to China.

  • The market panic surrounding DeepSeek, a Chinese AI startup, had already caused Nvidiaโ€™s market cap to plummet by $589 billion earlier in the week.

Despite a 9% rebound on Tuesday, the AI chipmaker continues to face volatility as investors await earnings results from Meta, Microsoft, and Tesla later today for reassurance on the AI sectorโ€™s future.

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