Major stock indexes quickly ended their two-day winning streak as the Nasdaq dropped more than 400 points and the Dow Jones Industrial Average plunged 260 points at the close Tuesday. Holding an industry conference didn't seem to help Magnificent Seven name Nvidia as it sank again along with Tesla on the stock market today.
The Dow Jones resumed its downturn, dropping 0.6%, putting the 30-stock index further below its 200-day moving average. Stocks on the S&P 500 fell 1.1%, setting back that index's attempts to get out of correction territory.
The Nasdaq composite remained the biggest loser of the major indexes, dropping 1.7% and falling even further below its 200-day line. Small caps showed weakness as well, with the Russell 2000 retreating 0.9%.
Volume was higher on the Nasdaq and lower on the New York Stock Exchange vs. the same time Monday. On the Nasdaq exchange, falling stocks topped rising issues by more than 5-to-3, while losers beat gainers by slightly less than 2-to-1 on the NYSE.
Elsewhere, bitcoin dropped nearly 3% to around the $82,000 level.
Nvidia Stock Drops Despite CEO Comments
Nvidia stock dropped 3.4% as the company hosted its GTC artificial intelligence conference with Chief Executive Jensen Huang giving a keynote speech Tuesday at 1 p.m. ET. He was expected to discuss topics including AI, robotics and accelerated computing. He also announced Nvidia's new Blackwell Ultra chip.
"AI is moving from cloud data centers to the rest of the world," Huang said in his unscripted speech.
He sees data center spending reaching $1 trillion by 2028. He also talked about a collaboration with General Motors using AI.
Nvidia stock sits firmly below its 50-day and 200-day lines in an early-stage consolidation with an official 153.13 entry. But an early entry is seen at 143.44. Nvidia stock was the biggest loser on the Dow Jones index Tuesday. General Motors stock slid 0.7% and tested its 50-day line, finding resistance.
Meanwhile, Tesla plunged again, losing more than 5% in trades Wednesday. RBC Capital Markets slashed its price target on the electric-car maker from 440 to 320, but kept its buy rating.
3:19 p.m. ET
Fed Meeting Finishes Wednesday
In economic news, the two-day meeting of the Federal Open Market Committee was set to start Tuesday with a rate decision from the Fed on Wednesday.
The odds of a March rate cut are practically nil, with futures traders seeing a more likely cut in June. They also predict a 67.8% chance of a cut of 25 basis points to 50 basis points at the June 18 meeting, according to CME FedWatch.
1:54 p.m. ET
Stock Market Today: Gold Stocks Shine
Four gold stocks were among the top 10 gainers on the IBD MarketSurge Growth 250 as gold prices hit a new high of $3,038.26 per ounce Tuesday.
South Africa-based DRDGold jumped more than 7% in heavy volume and reached a level not seen since September 2020. Shares are extended from the profit zone of a cup-with-handle base with an 11.49 buy point.
AngloGold Ashanti hoisted nearly 4% higher and is extended from the buy zone of a double-bottom base with a 31.46 buy point. Shares are near five-year highs and have surged nearly 50% this year.
Gold Fields notched a gain of more than 3% and is extended from the buy range of a cup-without-handle base with an 18.96 buy point. The gold stock has an ideal 99 Composite Rating and a muscular 97 Earnings Per Share Rating.
Triple Flag Precious Metals gained ground and is extended from a buy zone of a cup with handle with a 17.56 buy point.
Outside of the MarketSurge Growth 250, exchange traded fund VanEck Gold Miners ETF advanced nearly 1% and topped the buy zone of a cup-with-handle base with a 42.66 entry point. The stock is a holding on IBD SwingTrader.
12:17 p.m. ET
Economic News: Housing Starts Beat Estimates
February housing starts came in at 1.501 million on an annual rate and far exceeded the 1.383 million expected while topping January's revised 1.35 million, according to the U.S. Census Bureau.
The bureau also said February annualized housing permits of 1.456 million slightly topped the 1.45 million estimate but lagged the revised 1.473 million reading from January.
Lastly, the Federal Reserve's February industrial production index increased 0.7% vs. the 0.2% projected. And the manufacturing output index bolted higher 0.9% vs. the 0.1% rise forecast.
Robinhood Slides As A Biotech Tanks
Sarepta Therapeutics plummeted in huge volume on news a patient receiving its approved gene therapy, Elevidys, died due to acute liver failure. The therapy is used to treat Duchenne muscular dystrophy. The biotech stock is about 54% below its 52-week high reached in June.
Robinhood Markets skidded, erasing a portion of Monday's 7.1% gain. On Monday, the online brokerage announced it launched a prediction markets hub on its app that allows users to trade the outcomes of real-world events, ranging from sports and politics to economics. The new feature was released ahead of college basketball's March Madness tournament.
Robinhood stock is below its 10-week moving average and 41% off its 52-week high reached in mid-February.
Beacon Roofing Supplies rose and broke out of an early-stage flat base with a 121.42 buy point. It sits in a buy zone up to 127.49. Its relative strength line hit a 52-week high as shown by the blue dot identified by MarketSurge chart analysis.
10:46 a.m. ET
Stock Market Today: Google Sinks
Alphabet slumped on news it reignited talks to buy privately held cybersecurity company Wiz for $32 billion. This is a heftier price tag than the $23 million it was negotiating last summer. Google stock is deep below its 200-day line and has lost around 16% so far this year.
Warren Buffett's Berkshire Hathaway added a fraction and hit an all-time high on the stock market today.
When To Sell Growth Stocks: Don't Freeze If A Double-Digit Gain Shrinks Fast
Other Stock Movers: Two China Names Report Earnings
China-based XPeng plunged as the electric vehicle maker reported a smaller fourth-quarter loss than expected, but sales came in a little shy of expectations. The company delivered 91,507 vehicles during the period, or a 52.1% increase over the prior year. XPeng had predicted first-quarter deliveries of 91,000 to 93,000 with revenue above views.
Shares have had a spectacular run since breaking out of a double-bottom base with a 14.66 buy point in late January. XPeng stock has more than doubled so far this year.
Another China name, Tencent Music Entertainment, bolted higher after the streaming music and entertainment provider topped fourth-quarter profit and revenue estimates. Its revenue grew 8.2% in the fourth quarter. The company focuses on using technology to enhance user experience.
"Looking ahead to 2025, we aim to harness the power of AI to personalize our services and bring more new experiences to users," said Ross Liang, chief executive of Tencent Music Entertainment.
Shares have traded in the 10-to-14 price level since August. The stock holds a 97 IBD Composite Rating.
Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
