The New York stock market turned downward on Thursday.
After rising the previous day on hopes of two interest rate cuts from the Federal Reserve within this year, the market shifted to a bearish direction within just one day.
In contrast, Nvidia and Tesla continued rising for the second consecutive day.
Meanwhile, quantum computing stocks plummeted.
Market Reversal
After just one day, the three major New York stock market indices halted their upward momentum.
The Dow Jones Industrial Average, composed of 30 large-cap stocks, joined the decline at the last minute, causing all three indices to fall.
The Dow, which seemed to maintain its upward trend, closed down slightly at 40,953.32, a decrease of 11.31 points (0.03%).
The S&P 500, which broadly reflects market conditions, finished at 5,662.89, down 12.40 points (0.22%).
The tech-heavy Nasdaq also closed at 17,691.63, down 59.16 points (0.33%).
The CBOE Volatility Index (VIX), Wall Street’s Fear Index, ended at 19.80, down 0.10 points (0.50%). For the first time this month, the VIX broke the psychological resistance level 20, indicating that investor sentiment was gradually stabilizing.
Nvidia and Tesla Rise for Two Days
On the fourth day of the Graphics Processing Unit Technology Conference (GTC), Nvidia declared it “Quantum Day,” focusing on discussions on quantum computing. Although the gains were modest, Nvidia continued its upward trend for the second consecutive day. By the end of the session, it rose by $1.01 (0.86%) to close at $118.53.
Tesla maintained its upward momentum after Howard Rutnik, the U.S. Secretary of Commerce, recommended buying the stock during an interview with Fox News the previous night. Rutnik stated that the stock was undervalued, considering Tesla’s potential in robotics and other technologies.
Despite concerns about a potential conflict of interest due to Rutnik’s recommendation, Tesla ultimately succeeded in rising.
Tesla closed at $236.26, up $0.40 (0.17%).
On March 12, U.S. President Donald Trump even participated in a promotional event for Tesla’s electric vehicles at the White House. His administration is making various efforts to support Tesla and its CEO, Elon Musk, who has faced public criticism due to his role at DOGE.
However, the Tesla Cybertruck was recalled entirely today, indicating that the Trump administration’s “family support” has limits.
Quantum Computing Stocks Plummet
Quantum computing stocks suffered a significant drop on this day.
Investors, eager to realize profits after a recent surge, began selling off their shares after Nvidia’s “Quantum Day” event failed to deliver groundbreaking news.
D-Wave plunged by $1.91 (18.02%), falling to $8.69. After closing at $11.18 on March 17, D-Wave’s stock had more than doubled in value throughout March but dropped over 22% in just three days.
Quantum Computing fell by $0.98 (11.71%) to $7.39, while Rigetti dropped by $0.91 (9.24%) to $8.99.
IonQ also fell by $2.16 (9.27%) to $21.14.
Consulting Firms Hit by Aftermath of DOGE Spending Cuts
The reality of the aftermath of the government spending cuts led by Musk’s DOGE hit consulting firms hard.
DOGE has been leading federal government spending cuts and layoffs.
Accenture reported that its second-quarter net income and revenue slightly exceeded market expectations, but it expressed concerns about the outlook due to reduced government spending. According to Accenture, U.S. government spending accounted for 8% of its global revenue and 16% of its U.S. revenue for the 2024 fiscal year.
Accenture’s stock fell by $23.56 (7.26%) to $300.91.
Booz Allen Hamilton dropped by $9.13 (8.10%) to $103.58.
