The New York stock market showed mixed results on Wednesday.
The Dow Jones Industrial Average, which had risen for two consecutive days, reversed its course and declined, while the S&P 500 and Nasdaq rebounded after a five-day losing streak.
Semiconductor stocks rallied as investors flocked to Nvidia ahead of its quarterly earnings report after the market closed.
Meanwhile, Tesla’s shares plunged nearly 4% after breaking through its resistance level.
International oil prices retreated for the second consecutive day.
S&P 500 and Nasdaq Rebound
The S&P 500, which best reflects market trends, saw a slight gain.
The index closed up 0.81 points (0.01%) at 5,956.06.
The tech-heavy Nasdaq climbed 48.88 points (0.26%) to finish at 19,075.26. During the day, the index briefly dipped below the 19,000 mark but recovered and finished higher.
The S&P 500 and Nasdaq snapped a four-day losing streak, marking their first gains in five sessions.
In contrast, the Dow Jones Industrial Average, which had risen for two consecutive days, reversed course and declined.
The blue-chip index fell 188.04 points (0.43%) to close at 43,433.12.
Semiconductor Stocks Surge
Semiconductor stocks rallied ahead of Nvidia’s earnings report.
After the market closed, Nvidia shares jumped $4.65 (3.67%) to $131.28 after the company reported better-than-expected quarterly results. However, the stock dipped slightly in after-hours trading.
Nvidia announced that its revenue for the first quarter of fiscal year 2025, which ended in late January, soared 78% compared to last year.
Broadcom, a custom AI semiconductor maker, surged $10.40 (5.13%) to $212.94, while Micron Technology, an AI memory semiconductor manufacturer, climbed $4.49 (4.82%) to $97.71.
Taiwan Semiconductor Manufacturing Company (TSMC), which produces chips for Nvidia, saw its shares rise $5.25 (2.77%) to $194.62.
The iShares Semiconductor ETF (SOXX), which tracks the performance of semiconductor stocks, gained $3.73 (1.74%) to close at $217.94.
Tesla Drops 4%
Tesla’s stock price tumbled nearly 4% after plummeting 8.4% the previous day.
Tesla shares dropped $12.00 (3.96%) to $290.80.
Tesla’s stock is declining amid concerns about CEO Elon Musk’s political activities and signs of slowing electric vehicle sales.
Tesla’s stock has now fallen 19.35% since closing at $360.56 on February 19.
Since Trump’s inauguration on January 20, Tesla’s stock has plummeted by 31.82%.
However, it remains 15.7% above its closing price of $251.44 on Election Day, November 5, 2024.
Nevertheless, the short-term outlook for Tesla appears bleak.
Analysts suggest further declines are likely as the stock has broken through key support levels.
Frank Cappelleri, founder of CappThesis, has identified the 200-day moving average of $275 as the next support level.
Oil Prices Retreat for the Second Day
International oil prices fell for the second consecutive day.
Ongoing concerns about a potential U.S. economic slowdown and Trump’s announcement that he would impose retaliatory tariffs on all countries, including Mexico and Canada, starting April 2, have heightened market anxiety.
The global oil benchmark of Brent crude dropped $0.49 (0.67%) to $72.53 per barrel for the April delivery.
West Texas Intermediate (WTI), the U.S. oil benchmark, settled $0.31 (0.45%) lower at $68.62 per barrel for the April contract.
