All three major U.S. stock indices declined on Thursday
The tech-heavy Nasdaq fell for three consecutive days, while the Dow Jones Industrial Average and the S&P 500 shifted back to a downward trend just one day after a rebound.
Investors who had previously been motivated to buy by Donald Trump’s victory in the U.S. presidential election—driven by his promises of tax cuts and deregulation—appeared to lose momentum in the so-called Trump rally after November 12.
In particular, late in the trading session, Federal Reserve Chair Jerome Powell’s comments that there is no need to rush to lower interest rates dampened the investment sentiment.
Tesla, a leading stock in the Trump trade, plunged 6% amid the fading Trump rally and reports that Trump’s aides have begun discussing the removal of electric vehicle subsidies.
All Three Major Indices Decline
After all three indices fell on November 12 and the Dow and S&P 500 rebounded on November 13, the New York Stock Exchange saw all three major indices return to negative territory on November 14.
The Dow fell by 207.33 points (0.47%) to close at 43,750.86, while the S&P 500 dropped 36.21 points (0.60%) to 5,949.17.
The Nasdaq declined by 123.07 points (0.64%) to 19,107.65, coming close to breaking below the 19,000 level. This marked the Nasdaq’s third consecutive day of losses since November 12.
Tesla Drops by 6%
Tesla saw a 6% drop.
Amid the weakening Trump rally, news that Trump’s aides are discussing the removal of electric vehicle subsidies, which could negatively impact Tesla’s EV sales, caused the stock to plunge sharply.
The removal of EV subsidies had already been part of Trump’s campaign promises, so the news was not new. However, with Tesla’s stock having risen sharply recently, investors likely seized this opportunity to take profits, triggering sell-offs.
Tesla fell by $19.06 (5.77%) to close at $311.18. Despite the sharp drop, Tesla’s stock has surged more than 28% since the November 5 election.
Big Three Tech Stocks Rise
In contrast to Tesla’s steep decline, the three largest tech companies by market capitalization saw their stocks rise.
Nvidia gained $0.49 (0.33%) to close at $146.76, and Apple rose by $3.10 (1.38%) to finish at $228.22.
The market capitalization gap between Nvidia and Apple has widened significantly since the election. Since November 5, Nvidia’s stock has jumped 7.87%, while Apple’s has risen only 2.8%.
Based on closing prices, Nvidia’s market cap stands at $3.6 trillion, while Apple’s is at $3.45 trillion.
Microsoft (MS), the third-largest by market cap, closed up $1.69 (0.40%) at $426.89.
In contrast, Alphabet fell by $3.30 (1.84%) to close at $175.58, and Amazon dropped by $2.62 (1.22%) to finish at $211.48.
Meta Platforms slid by $2.84 (0.49%) to close at $577.16.
SMCI Continues to Plummet
Amid allegations of accounting fraud and the resignation of its auditor Ernst & Young (EY) on October 30, AI server company Supermicro Computer (SMCI) continued its downward spiral.
SMCI fell by $2.32 (11.41%) to close at $18.01.
Accounting for the stock split, this marks an 84.8% decline from its all-time high of $118.81 recorded in March.
If SMCI fails to submit its annual financial report to Nasdaq by November 16, it faces the risk of delisting. On the previous day, the company announced it would need more time, fueling concerns that delisting may be inevitable.
Meanwhile, IonQ, a quantum computing startup that has seen its stock skyrocket since Trump’s election, fell by $0.60 (2.24%) to $26.16.
Despite this drop, IonQ’s stock has soared by 82% since the election.
Crude Oil Prices Rise for Third Consecutive Day
International oil prices rose for the third consecutive day, driven by news of an unexpected decrease in U.S. gasoline inventories, although the increase was modest.
Brent crude, the international benchmark, closed at $72.56 per barrel, up $0.28 (0.39%) from the previous day.
West Texas Intermediate (WTI), the U.S. benchmark, gained $0.27 (0.39%) to finish at $68.70 per barrel for December delivery.
