The Dow Jones Industrial Average and the other major indexes closed near session lows in a broad tumble fueled in part by rising Treasury yields. Nvidia sold off nearly 6%, contributing to a weak tech sector.
The Dow closed 0.4% lower after nearly turning positive. The S&P 500 lost 1.1% and is back below its 50-day moving average after retaking the line just a day earlier.
The Nasdaq composite sold off 1.9% after meeting resistance around the 20,000 level. The index is just below its 21-day exponential moving average. The Russell 2000 fell 0.7%.
Volume fell on the New York Stock Exchange and rose substantially on the Nasdaq, according to preliminary data. Decliners topped advancers by 5-to-2 on the NYSE and by about 11-to-5 on the Nasdaq, according to FactSet.
Bitcoin sank 5.6% to just under the $96,400 level, after retaking the $100,000 mark Monday.
The 10-year Treasury yield added seven basis points to 4.68% to the highest since April 25. A pair of stronger-than-expected economic reports pushed bond prices lower.
The Institute for Supply Management reported that its Services Index rose to 54.1. That topped the 53.2 expected and was higher than November's 52.1. A reading above 50 indicates that the services economy is generally expanding.
In addition, the Labor Department's Job Openings and Labor Turnover Survey, or JOLTS, showed 8.098 million job openings in November vs. the 7.65 million projected. It also exceeded October's 7.744 million reading. Both reports pointed to a strong economy and dimming chances for additional interest-rate cuts.
3:14 p.m. ET
Stock Market Today: Palantir Falls, Loses 11% In Two Days
IBD 50 name Palantir Technologies skidded 7.1% and sliced through its 21-day line and is testing its 10-week moving average. Tuesday's move follows Monday's 5% drop. The stock has a price level of resistance around 80. Shares are extended from a bounce off the 10-week line in early November. Palantir stock was the biggest loser on the S&P 500 Tuesday.
The stock is on track for largest decrease since July 24, when it fell 7.7%, according to Dow Jones Market Data. Even with the two-day drop, the stock holds best-possible 99 Relative Strength and Composite Ratings.
Newly added IBD SwingTrader name, Boston Scientific, hoisted 0.9% and broke out of a flat base with a 91.93 buy point. The medical device company is in a buy range up to 96.53. Shares reached a record high on the stock market today, and its relative strength line reached a 52-week high.
Tesla plunged 4.3% after BofA Securities downgraded the electric vehicle giant to neutral from buy. The stock fell back below its 21-day line and undercut the 400 level after two days above that level.
1:52 p.m. ET
Glass Stock Shatters After Earnings
Apogee Enterprises plummeted around 16% in giant volume after the glass and window building products maker topped fiscal third-quarter adjusted earnings and sales estimates but said it now expects fiscal 2025 net sales to drop 5%.
The stock fell deeper below its 50-day line and knifed through its 200-day moving average. The stock had already triggered a sell signal after undercutting its 50-day line in mid-December.
IBD 50 stock Coinbase Global fell 6.8% in sympathy with the drop in bitcoin prices. The cryptocurrency exchange undercut its 50-day line after reclaiming it Monday. The stock experienced a round-trip sell signal in mid-December after giving back a 23% gain from the 283.48 buy point of a deep base. Shares are about 5% below the entry.
Ross Stores slid 1.8% after Bernstein downgraded the discount retailer to market perform from outperform and cut its price target to 165 from 178. The stock pulled back to its 21-day line, seeking support. Shares are in a cup-with-handle base with a 158.69 buy point.
12:25 p.m. ET
Medical Device Stock Soars
Inari Medical catapulted more than 22% in enormous volume following news that Stryker agreed to buy the medical device company for around $4.9 billion. Shares are extended from a cup-with-handle base with a 53.67 buy point.
Stryker stock fell 1.5% on the news. Shares dipped below the bottom of a flat base with a 398.20 buy point and are falling further below their 50-day line.
Carvana bolted more than 6% higher after RBC Capital upgraded the online auto retail stock to outperform from sector perform and raised its price target to 280 from 270.
Israel-based Elbit Systems added 2% and reached an all-time high on the stock market today.
10:40 a.m. ET
Nvidia Stock Falls But Deal News Lifts Uber
Nvidia gave back early gains and tumbled more than 5%. Chief Executive Jensen Huang unveiled new artificial intelligence initiatives for the company at the CES keynote speech Monday night.
Shares broke out past the 146.54 buy point of a double-bottom base Monday as it moved 3.4% higher. Nvidia sits in a buy zone up to 153.87. The IBD 50 and SwingTrader stock is flirting with its all-time high set on Nov. 21. Its relative strength line reached a 52-week high as shown by the blue dot on the MarketSurge weekly chart.
Further, Uber Technologies popped 1.3% after Nvidia announced a partnership with the ride sharing company for AI-powered autonomous driving technology.
Uber stock is on pace for its fourth straight day of gains and nearing its 50-day line. The stock is clawing back after a downward spiral following a failed breakout from an irregular base in October. The stock's drop below the 50-day line had triggered a sell signal. It holds a weak 27 IBD Relative Strength Rating.
Market Sells Off As Nvidia Skids; What To Do Now
Stock Market Today: Uniform Supplier Soars On Takeover News
Unifirst catapulted 28% higher in huge volume after Cintas offered to buy the rival uniform supplier in a deal valued at $5.1 billion. Unifirst reached a level not seen since March 2021. Cintas added 2.8% on the stock market today.
Roku gained 1.7% after the streaming service provider reported it topped 90 million streaming households in the first week of January. Shares are in the buy zone up to 84.81 of a choppy undefined base with an 80.77 buy point.
Ulta Beauty powered up 3.8% after the beauty retailer announced CEO Dave Kimbell is stepping down. The news prompted several analysts' price target hikes. The stock has underperformed as reflected in its 62 Relative Strength Rating.
Finally, Snowflake advanced 0.8% after Wells Fargo upgraded the stock to overweight from equal-weight and raised its price target to 200 from 150. Shares are on pace for four straight days of gains. The stock is climbing back after falling from recent highs set in early December.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
