US stock market: Nvidia, Tesla shares tumble, S&P 500, Nasdaq, Dow Jones end in red. Reasons behind Wall Street bloodbath

US stock market indexes -- S&P 500, Nasdaq, and Dow Jones -- on Tuesday fell as Wall Street darling Nvidia, Tesla stocks tanked. This has come after a batch of upbeat economic data raised concerns that an inflation rebound could slow down the Federal Reserve's pace of monetary policy easing.

S&P 500 lost 66.35 points, or 1.11 per cent, to 5,909.03 and the Nasdaq Composite lost 375.30 points, or 1.89 per cent, to 19,489.68, and Dow Jones Industrial Average fell 178.20 points, or 0.42 per cent, to 42,528.36.

Higher yields pushed technology-sector stocks lower by 2.39 per cent. Shares of AI bellwether Nvidia fell 6.22 percent. Most of the 11 S&P 500 sectors declined, except for healthcare and energy stocks.


Tesla shares fell 4 per cent after BofA Global Research downgraded the stock to 'neutral' from 'buy'.

Micron Technology rose 2.67 per cent after Nvidia boss Jensen Huang said the chipmaker was providing memory for the AI bellwether's GeForce RTX 50 Blackwell family of gaming chips.

Citigroup rose 1.29 per cent on bullish coverage from Truist Securities, while Bank of America went up 1.5 per cent after positive ratings from at least three brokerages. Some big banks are expected to report quarterly earnings in the next week.

The main focus of the week is the key non-farm payrolls data, along with minutes from the Fed's December meeting.

In the previous session, the S&P 500 and the Nasdaq closed short of one-week highs on uncertainty after President-elect Donald Trump denied a report that his team was exploring less aggressive tariff policies.

Declining issues outnumbered advancers by a 2.14-to-1 ratio on both the NYSE and the Nasdaq. S&P 500 posted 9 new 52-week highs and 16 new lows while the Nasdaq Composite recorded 60 new highs and 58 new lows. Volume on U.S. exchanges was 20.45 billion shares, compared with the 12.52 billion average for the full session over the last 20 trading days.

FAQs

Q1. What are key indexes of US Stock market?
A1. US stock market indexes are S&P 500, Nasdaq, and Dow Jones.

Q2. What do we know about Nvidia stock?
A2. Shares of AI bellwether Nvidia fell 6.22 percent.