US stock market today crashes but Elon Musk's Tesla, Nvidia share prices soar. Here's why

US stock market is nosediving further on Tuesday even as Tesla and Nvidia share prices were up. This came following President Donald Trump’s latest escalation in his trade war, briefly pulling Wall Street 10 per cent below its record set just a few weeks ago.

Key Wall Street index S&P 500 was down 0.6 per cent in afternoon trading. Dow Jones Industrial Average was down 462 points, or 1.1 per cent, as of 2:10 p.m. (ET) While most stocks on Wall Street were falling, gains for Tesla and a handful of other highly influential stocks were muting the effect, and the Nasdaq composite was flat.

The S&P 500 was at the edge of what Wall Street calls a 'correction', where it falls 10 per cent, and was sitting within 0.9 percentage points of the mark. It had earlier sunk as much as 1.5 per cent during the day after erasing an initial, modest gain.


Oracle dropped 5 per cent after the technology giant reported profit and revenue for the latest quarter that fell short of analysts’ expectations.

Helping to keep the market's losses in check were several Big Tech stocks, which steadied a bit after getting walloped in recent months. Elon Musk’s Tesla rose 4.8 per cent, for example, after Trump said he would buy a Tesla in a show of support for "Elon’s ‘baby.’”

Tesla's sales and brand have been under pressure as Musk has led efforts in Washington to cut spending by the federal government. Tesla's stock is down 42.3% for the young year so far.

Other Big Tech superstars, which had led the market to record after record in recent years, also held a bit firmer. Nvidia added 2.9 per cent to trim its loss for the year so far to 18 per cent. It’s struggled as the market’s sell-off has particularly hit stocks seen as getting too expensive in Wall Street’s frenzy around artificial-intelligence technology.

FAQs

Q1. How are Oracle stocks performing?
A1. Oracle dropped 5 per cent after the technology giant reported profit and revenue for the latest quarter that fell short of analysts’ expectations.

Q2. How is Nvidia performing?
A2. Nvidia added 2.9 per cent to trim its loss for the year so far to 18 per cent.