The Dow Jones Industrial Average was headed for its ninth-straight loss as blue chips tumbled more than 200 points in morning action Tuesday. Nvidia (NVDA) buckled again over concerns its voltage devices suffer from heat issues, and Tesla (TSLA) rose on the stock market today amid analysts’ making a “bull case” for the stock.
The Dow lost 0.6%, as it last had a positive day on Dec. 4 when it reached an all-time high of 45,073. Since then, blue chips have dropped more than 3% and are testing their 50-day moving average.
Meanwhile, the benchmark S&P 500 index dropped 0.5%. The Nasdaq dropped 0.6%, giving back some of its strong 1.2% gain on Monday and testing the 20,000 mark again.
Volume on both the New York Stock Exchange and Nasdaq was higher compared with the same time on Monday.
Small caps on the Russell 2000 fell 1.1% while the Innovator IBD 50 (FFTY) exchange traded fund suffered a 2.8% loss. The fund fell back into a buy zone from an entry point of 29.15.
The yield on the benchmark 10-year Treasury note edged lower near 4.39%. And bitcoin climbed near the $106,200 level.
2025 Risk Outlook Shifts
Elsewhere, a report from Deutsche Bank Research shows that investors’ outlook on market risk has shifted from a “hard landing” in 2024 to a general weakening in tech stock valuations, stubborn inflation and yields. Investors also see a possible trade war in 2025, in the face of possible tariffs planned by President-elect Donald Trump.
“Some investors now worry that Trump’s trade agenda for more tariffs could spark a rise in still-sticky inflation,” the Deutsche Bank report said.
In economic news, retail sales rose 0.7% month-on-month vs. consensus views of 0.5% for November. Excluding autos, though, sales were up 0.2% vs. expectations for 0.4%.
Further, the Federal Reserve started its meeting Tuesday, and plans to have a rate decision announcement Wednesday. Traders expect a 97.4% chance of interest rate cuts by 25 basis points, according to CME FedWatch Tool.
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Dow Jones: Nvidia Sinks, Tesla Keeps Chugging
Nvidia was the worst performer in the Dow. The artificial intelligence giant triggered a sell signal after news late Monday that power chips tested on its Blackwell systems had “severe thermal issues.”
Nvidia is testing two voltage regulator modules, the AOS 5×5 DrMOS and the MPS 5×6 DrMOS. The issue may also rise from the thermal management system and may give rise to delays in the mass production of Nvidia’s Blackwell chip.
“Nvidia may take proactive measures to avoid delays in GB300/B300 mass production,” if the issue remains, said TF International Securities analyst Ming-Chi Kuo in a note to clients.
Nvidia stock also felt pressure Tuesday from reports that a key customer Microsoft (MSFT) currently is not “chip supply constrained.” UBS analyst Timothy Arcuri believes that the software giant may have represented 13% of Nvidia’s fiscal first-quarter sales. Shares fell 3% on the stock market today.
Are These Magnificent Seven Stocks A Buy Now?
Alphabet | Amazon | Apple | Meta | Microsoft | Nvidia | Tesla
Among other Magnificent Seven stocks, Tesla (TSLA) rose to another record high with a gain of nearly 2%, putting it on pace for its ninth gain out of the last 10 sessions.
Late Monday, Wedbush analyst Dan Ives raised the price target for Tesla stock to 515 from 400. But the analyst did not rule out a “bull case” for the stock hitting 650 in 2025.
In the MarketSurge 250, several recent gainers fell. Broadcom (AVGO), Credo (CRDO), AppLovin (APP) and Palantir (PLTR) declined. Bitcoin miner Hut8 (HUT) rose.
Stock Market Today: Heico To Report
Warren Buffett’s Berkshire Hathaway (BRKB) holding Heico (HEI) heads into earnings at market close. Shares rose and are retaking their 50-day moving average.
The famed investor bought the aerospace and defense company in the second quarter.
See The Latest Updates To IBD Watchlists
Homebuilder Lennar (LEN) fell further below the 50-day moving average ahead of its earnings on Wednesday.
FedEx (FDX) and Nike (NKE) will report on Thursday. Shares of FedEx are in a consolidation with a buy point of 313.84. Dow Jones component Nike is in a downtrend and is testing its 50-day moving average.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
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