Dow Jones Slides 400 Points as Nvidia and Palantir Extend Losses (Live Update)
The Dow Jones Industrial Average fell more than 400 points on Tuesday, signaling a sharp pullback in U.S. equities amid heightened concerns over technology sector earnings and broader macroeconomic pressures. The decline was led by significant losses at Nvidia Corp. and Palantir Technologies, both of which saw their shares tumble further after recent earnings disappointments.
At the opening bell, the Dow opened down 0.8 percent and continued to slide throughout the session, closing 1.2 percent lower. The Nasdaq Composite, which is heavily weighted toward tech stocks, mirrored the trend, dropping 1.5 percent. Nvidia, a major driver of the recent rally in semiconductor stocks, slipped nearly 6 percent after analysts highlighted weaker-than-expected demand for graphics processing units and a slowdown in data‑center orders. Palantir, the data‑analytics firm, fell about 5 percent following a modest revenue miss and guidance that fell short of market expectations.
Market analysts cited a combination of factors behind the sell‑off, including lingering inflation worries, the Federal Reserve’s indication that further rate hikes remain possible, and a slowdown in consumer spending. “The market is reacting to a confluence of macro‑economic uncertainty and sector‑specific earnings pressure,” said a generic industry analyst. Financial experts noted that the tech sector’s recent outperformance may have been overstretched, making it vulnerable to any negative news.
Investors also pointed to broader geopolitical tensions and supply‑chain constraints that continue to affect manufacturing and technology firms. Several institutional investors reportedly adjusted their portfolios, reducing exposure to high‑growth tech stocks while increasing holdings in defensive sectors such as utilities and consumer staples.
Looking ahead, traders will watch upcoming earnings reports from other semiconductor and software companies for clues about the sector’s momentum. Analysts expect that if inflation data remains sticky, the market could see further volatility. Nonetheless, some experts maintain a longer‑term bullish outlook for technology, emphasizing continued innovation and the gradual recovery of demand as the economy stabilizes.
