Wall Street took another hit on Wednesday as former market leaders Nvidia, Tesla, and other Big Tech stocks suffered sharp declines, AP reported.
The S&P 500 dropped 1.1%, snapping a recent period of stability. The Dow Jones Industrial Average swung from a morning gain of 230 points to close with a loss of 132 points, down 0.3%. Meanwhile, the Nasdaq composite led the downturn, falling 2%.
The once-dominant “Magnificent Seven” stocks have been at the center of the market’s recent struggles. Earlier this month, the S&P 500 slipped 10% below its record high, its first correction since 2023.
While Big Tech soared in previous years on artificial intelligence hype, some analysts warned that their stock prices climbed too fast compared to their earnings.
Nvidia led the decline, tumbling 6% by day’s end and bringing its total losses for 2025 to 15.5%. AI-related stocks suffered as well, with Super Micro Computer sliding 8.9% and energy companies tied to AI data centers also struggling.
Tesla dropped 5.6%, adding to its 2025 losses already bringing its total loss to 32.6%. The electric vehicle maker faces growing concerns that CEO Elon Musk’s political controversies could dent sales.
Other automakers saw wild swings after the White House announced, after the market closed, that President Donald Trump would impose tariffs on auto imports. General Motors fell 3.1%, while Ford Motor swung between gains and losses before ending up just 0.1%.
Wall Street had been rebounding in recent days, but analysts warned that volatility isn’t over. A new wave of US tariffs, which will take effect next week, has rattled investors, even before their full impact is known.
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