Momentum-Struck Stocks Decline as Tesla Drops Late – US Market Wrap
In a session that saw equities drop along with gold and cryptocurrencies, volatility returned to Wall Street. Recent concerns about trade were heightened by news reports indicating that the Trump administration is considering imposing limits on software exports to China.
Calls for a break have surfaced after a tumultuous protest. Following Netflix’s post-earnings slide and Texas Instruments’ dovish outlook, the Nasdaq 100 fell 1%. Late at night, Tesla’s stock fell after its profits fell short of forecasts. Additionally, traders closely monitored geopolitical developments, as Treasury Secretary Scott Bessent stated that the United States would increase sanctions on Russia.
The assets that saw the biggest losses on Wednesday were those that were preferred by retail momentum traders, including precious metals, cryptocurrencies, and artificial intelligence startups.
The S&P 500 ended the day just below 6,700. Netflix’s stock fell 10%. Texas Instruments saw a 5.6% decline. Echoing the meme-stock mania that occasionally shakes the market, Beyond Meat whipped. The small-cap Russell 2000 saw a 1.5% decline.
At 3.96%, the yield on 10-year Treasuries barely changed. The US sold $13 billion worth of 20-year bonds, which was a good amount. Bitcoin experienced a 2.7% decline. The dollar faltered. Gold experienced a 2.9% decline before reversing its losses. The oil rose.
