Wall Street Stumbles as Tech Giants Falter; Nvidia and Apple Lead the Slide

Wall Street kicked off the week on a shaky note, with tech heavyweights like Nvidia and Apple dragging markets lower amidst concerns over interest rates and global trade. The S&P 500 fell 0.6% in midday trading, marking its fourth losing week out of the last five. The Nasdaq composite fared worse, dropping 1.3%, while the Dow Jones Industrial Average bucked the trend, climbing 139 points, or 0.3%.

Tech Stocks Under Pressure

Big Tech bore the brunt of the sell-off as investor optimism about Federal Reserve rate cuts continued to fade. Nvidia slid 2.9%, weighing heavily on the S&P 500, though the drop is minor compared to the chipmaker’s massive gains over the past three years, fueled by AI enthusiasm.

Nvidia’s decline follows President Joe Biden’s proposed export restrictions on advanced AI-enabling chips. Industry leaders have cautioned that such policies could disrupt global supply chains and harm U.S. competitiveness.

Apple dropped 2.3%, and Microsoft slipped 1.2%, exerting significant pressure on the broader market due to their outsized influence on major indexes.

Moderna and Macy’s Struggle

Elsewhere, Moderna saw its shares plummet 21.5%, the steepest decline in the S&P 500, after issuing a 2025 revenue forecast that fell short of Wall Street’s expectations. The vaccine maker is grappling with waning COVID-19 sales and announced plans to accelerate cost-cutting efforts in research and other areas.

Retail giant Macy’s also faced turbulence, falling 6.3% after warning that its year-end revenue could come in at the lower end—or below—the $7.8 to $8 billion range it had previously projected.

Oil Gains Offer a Silver Lining

Amid the broader market slump, energy stocks provided a rare bright spot. U.S. benchmark crude prices surged 3% to $78.82 per barrel, while Brent crude climbed 1.8% to $81.23. The gains followed an announcement by the Biden administration to expand sanctions on Russia’s energy sector.

Exxon Mobil rose 2.2%, and Valero Energy jumped 6.4%, leading gains among oil-and-gas companies.

Rising Treasury Yields Loom Large

In the bond market, Treasury yields continued their upward march. The yield on the 10-year Treasury note rose to 4.79% from 4.76% on Friday, extending a relentless climb from below 3.65% in September.

The increase reflects robust U.S. economic data and concerns that tariffs and other inflationary policies could drive prices higher. Investors are eyeing Wednesday’s inflation report for December, expected to show a slight uptick to 2.8% from November’s 2.7%.

“Rates remain the most important variable for equity market direction,” said Morgan Stanley strategist Michael Wilson.

Earnings Season and Global Outlook

The week ahead holds additional potential market movers, including earnings reports from financial heavyweights such as Bank of America and JPMorgan Chase. These will set the tone for the upcoming earnings season.

Globally, stock markets also faltered. Hong Kong’s Hang Seng dropped 1%, while Shanghai’s benchmark edged 0.2% lower despite stronger-than-expected export data from China. Factories have been racing to fulfill orders ahead of looming tariff increases from the U.S.

As Treasury yields rise and rate cuts appear less likely, the pressure is mounting on companies to deliver significant profit growth to sustain current valuations. For now, Wall Street remains in a cautious holding pattern.