Wall Street Slides as Nvidia and Bitcoin Stocks Tumble/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The stock market fell on Monday as Nvidia, Bitcoin, and other high-growth stocks faced significant losses. The S&P 500 dropped 0.8%, led by declines in AI and cryptocurrency-related stocks, while oil companies gained on rising crude prices. Concerns about inflation and Federal Reserve rate policies added to market uncertainty.
Stock Market Update: Quick Looks
- Index Performance: S&P 500 (-0.8%), Nasdaq (-1.5%), Dow Jones (+0.1%).
- Biggest Losers: Nvidia (-4.4%), Bitcoin-related stocks, Moderna (-22.6%).
- Sector Winners: Oil companies (Exxon +1.7%, Chevron +2.3%) as crude prices rose.
- Economic Factors: Inflation fears and doubts over Federal Reserve rate cuts.
- Global Markets: Mixed results; Hong Kong (-1%), Shanghai (-0.2%).
Wall Street Slides as Nvidia and Bitcoin Stocks Tumble
Deep Look:
Wall Street stumbled on Monday, weighed down by steep losses in artificial intelligence and cryptocurrency-related stocks, including Nvidia and Bitcoin. The decline reflected growing investor anxiety about Federal Reserve interest rate policies, inflation, and geopolitical factors.
Market Highlights
The S&P 500 fell 0.8% in early trading, marking its fourth losing week in five, while the Nasdaq Composite dropped 1.5%, leading the broader market lower. In contrast, the Dow Jones Industrial Average managed a modest gain of 52 points (+0.1%).
Tech and Crypto Stocks Under Pressure
- Nvidia: The AI-driven chipmaker fell 4.4%, erasing a fraction of its substantial gains over recent years. Nvidia’s decline follows President Joe Biden’s proposal for stricter export rules on AI-related chips, sparking concerns about disrupted global supply chains.
- Bitcoin: The cryptocurrency slid below $91,000, retreating further from last month’s record high of $100,000. This decline dragged down crypto-adjacent companies like MicroStrategy (-6.3%) and Coinbase (-5.1%).
Moderna’s Sharp Decline
Moderna shares tumbled 22.6% after the company issued a weaker-than-expected revenue forecast for the year. Facing declining COVID-related sales, Moderna announced plans to accelerate cost-cutting efforts, including reductions in research and development spending.
Oil Companies Shine
Energy stocks were among the market’s few bright spots. Rising crude prices, driven partly by expanded U.S. sanctions on Russia’s energy industry, bolstered oil giants like Exxon Mobil (+1.7%) and Chevron (+2.3%).
- Crude Prices: U.S. benchmark crude rose 1.2% to $77.49 per barrel, while Brent crude climbed 0.9% to $80.43 per barrel.
Inflation and Rate Expectations
Investor hopes for Federal Reserve rate cuts in 2025 have dimmed as inflation remains stubbornly above the central bank’s 2% target. Traders are now questioning whether the Fed will ease monetary policy at all this year.
- Treasury Yields: The 10-year Treasury yield rose slightly to 4.77%, continuing its upward trajectory from 3.65% in September.
Global Markets React
Overseas, markets were mostly lower:
- Asia: Hong Kong’s Hang Seng Index dropped 1%, and Shanghai’s Composite Index edged down 0.2%. Despite reporting faster-than-expected export growth in December, China’s markets faced pressure as factories rushed to fulfill orders ahead of potential U.S. tariffs under President-elect Donald Trump.
- Europe: Markets across Europe also struggled, reflecting concerns about inflation and global trade policies.
Looking Ahead
Investors are bracing for Wednesday’s U.S. inflation report, expected to show a slight acceleration to 2.8% in December from 2.7% in November. This report could provide fresh insights into the Federal Reserve’s next steps and the broader economic outlook.
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