Tesla and Nvidia Lead Market Decline as S&P 500 Plunges

Major technology stocks experienced a significant downturn today, impacting Wall Street’s recent upward momentum. The S&P 500 saw a decline of 1.2%, with the Nasdaq 100 dropping by 1.8% and the Dow Jones Industrial Average falling by 0.8% at the time of writing.

Tech Megacaps See Significant Selloff as Markets Await Fed Decision

A notable factor in this downturn was the decline of the “Magnificent Seven” megacaps, with Tesla (NASDAQ: TSLA) and Nvidia (NASDAQ: NVDA) among the stocks facing substantial losses.

This market shift occurs amidst anticipation of the Federal Reserve’s decision on interest rates and concerns over the economic implications of President Donald Trump’s trade policies.

Despite recent positive data in manufacturing and home construction, investor sentiment remains cautious due to geopolitical tensions and uncertainty about the Fed’s next steps.

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Magnificent Seven Stocks Recap

The technology sector, particularly the leading megacaps, saw notable price shifts. Tesla’s stock, for example, opened at $228.19 and was trading at $228.30 by midday, reflecting a day low of $222.28. Nvidia also experienced a decline, opening at $118.05 and trading at $117.34, with a day low of $114.54. Analysts have maintained a hold recommendation for Tesla, with a target mean price significantly higher than its current trading price, indicating potential for future recovery. Nvidia, on the other hand, continues to receive a strong buy recommendation, suggesting confidence in its long-term prospects despite current market volatility.

Alphabet Inc. (NASDAQ: GOOGL) also faced a challenging trading day, opening at $163.675 and dropping to a current price of $160.01. The stock hit a day low of $156.72, highlighting investor caution. Despite this, GOOGL maintains a buy recommendation with a target mean price of $217.93, suggesting optimism for future growth. The firm also announced it’s largest acquisition ever today, targeting the cloud security startup Wiz for $32 billion.

Meanwhile, Apple Inc. (NASDAQ: AAPL) opened at $214.14 and was trading at $213.26. Although the stock has seen a slight decline from its 52-week high, it remains a buy recommendation, supported by its strong market capitalization and consistent dividend yield.

Meta Platforms Inc. (NASDAQ: META) opened at $600.25 and was trading lower at $578.64, with a day low of $574.66. Despite this downturn, analysts have issued a strong buy recommendation, with target prices indicating potential for significant upside.

Microsoft Corp. (NASDAQ: MSFT) also faced a decrease, opening at $387.28 and trading at $383.145. The stock’s current price is closer to its 52-week low, yet it continues to receive a strong buy recommendation, reflecting confidence in its long-term financial health and market position.

Amazon.com Inc. (NASDAQ: AMZN) opened at $192.52 and was trading at $192.057, with a day low of $189.4. Analysts remain optimistic, issuing a strong buy recommendation with a target mean price well above the current trading level.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.