T&G Market Recap: Fed Rate Decision & Market Updates: Nasdaq Slides as Nvidia Drags Tech Lower ๐๐ป
Tech stocks take a hit as Nvidia faces pressure, while the Fed leaves rates unchanged, and earnings season heats up ๐๐
Stock Market Recap: Tech Stocks Lead Losses After Fed Decision ๐ผ
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 Fedโs statement regarding inflation and economic conditions.
Nasdaq fell 0.5%, retracing some of the gains from Tuesdayโs rebound.
S&P 500 dropped 0.47%, while the Dow Jones lost 0.31%.
The Fedโs statement removed the phrase about progress toward its 2% inflation target, instead stating, โInflation 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 โlanguage cleanup.โ His comments helped markets bounce off their lows.
Nvidia Under Pressure: Report of Potential Curbs on Exports to China ๐๐
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:
Nvidiaโs fall was attributed to a Bloomberg report stating that the Trump administration may impose additional curbs on Nvidiaโs chip exports to China.
The market panic surrounding DeepSeek, a Chinese AI startup, had already caused Nvidiaโs 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 sectorโs future.
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