Wed Jan 08 10:54:07 UTC 2025: ## Market Plunges as Nvidia Leads Tech Sector Sell-Off

**New York, NY (January 7, 2025)** – Major US stock indexes suffered significant losses Tuesday, closing near session lows in a broad market sell-off driven by rising Treasury yields and a slump in the technology sector. Nvidia’s (NVDA) nearly 6% decline heavily impacted tech stocks, while stronger-than-expected economic data further fueled the downturn.

The Dow Jones Industrial Average finished down 0.4%, narrowly avoiding a more substantial drop. The S&P 500 fell 1.1%, retreating below its 50-day moving average, and the Nasdaq Composite plummeted 1.9%, dipping below its 21-day exponential moving average. The Russell 2000 also declined by 0.7%. Trading volume was lower on the NYSE but significantly higher on the Nasdaq.

The sell-off extended beyond equities, with Bitcoin dropping 5.6% to under $96,400. The 10-year Treasury yield climbed seven basis points to 4.68%, its highest level since April 25, reflecting stronger-than-anticipated economic reports from the Institute for Supply Management (ISM) and the Labor Department’s JOLTS survey. These reports indicated a robust economy, lessening the likelihood of future interest rate cuts.

Several individual stocks experienced dramatic swings. Palantir Technologies (PLTR) plummeted 7.1%, while Apogee Enterprises (APOG) crashed nearly 16% after disappointing sales projections. Conversely, Inari Medical (NARI) soared over 22% following its acquisition by Stryker (SYK), although Stryker’s stock fell 1.5% on the news. Other notable movers included Boston Scientific (BSX), Tesla (TSLA), Coinbase Global (COIN), Ross Stores (ROST), Carvana (CVNA), Elbit Systems (ESLT), Unifirst (UNF), Roku (ROKU), Ulta Beauty (ULTA), and Snowflake (SNOW), each reacting to individual company news or broader market trends. Uber Technologies (UBER) saw a 1.3% increase following a partnership announcement with Nvidia.

The market’s reaction to Nvidia’s drop, following its CEO’s AI announcements at CES, highlights the tech sector’s sensitivity to economic indicators and investor sentiment. Analysts are advising caution, urging investors to carefully monitor economic data and individual company performance before making any significant investment decisions.

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