The Nasdaq plunges 350 points as chip restrictions loom with Nvidia earnings up next

The S&P 500 and Nasdaq Composite indexes experienced significant declines on Tuesday after February's consumer confidence figures fell short of expectations, registering at 98.3 against a consensus of 103.0, and down from January's 105.3. This marked the steepest drop since August. In response, U.S. government debt saw a rally, and the dollar weakened. The Nasdaq dropped approximately 357 points, or 1.85%, while the S&P 500 fell by 1%, and the Dow Jones Industrial Average decreased slightly by about 0.1%. Money markets are now anticipating more than two quarter-point interest rate cuts by the Federal Reserve this year, despite a rise in 12-month average inflation expectations to 6% from 5.2%, partly due to tariff concerns.

Several stocks were notably affected, with Nvidia and Super Micro shares falling due to reports of the U.S. seeking tighter chip restrictions on China. Strategy, formerly MicroStrategy, saw a 7% decline following Bitcoin's drop below $90,000. Chegg's stock plummeted 30% after filing a lawsuit against Google, claiming AI-generated summaries hurt its traffic and revenue. Home Depot's stock rose slightly after surpassing Wall Street sales expectations, projecting a 1% increase in comparable sales for the fiscal year. Meanwhile, Hims & Hers experienced a significant stock decline despite reporting strong sales for 2024.

Key takeaways

The S&P 500 and Nasdaq Composite indexes fell sharply after February consumer confidence missed expectations.
Money markets are pricing in more than two quarter-point interest rate cuts by the Federal Reserve this year.
Nvidia and Super Micro shares fell due to concerns over tighter U.S. chip restrictions on China.
Chegg stock fell 30% after filing a lawsuit against Google, claiming AI-generated summaries negatively impacted its traffic and revenue.

The Nasdaq plunges 350 points as chip restrictions loom with Nvidia earnings up next

Key takeaways

Discussion (0)