US Stock Market Today: Nasdaq Heads For Big Weekly Loss As Tech Stocks Slip

The benchmark Wall Street indices opened lower on Friday, driven by a decline in artificial intelligence-linked tech companies. The tech-heavy Nasdaq Composite index was hit hardest and traded nearly 1% lower at 22,843.54, while the S&P 500 and Dow Jones traded 0.58% and 0.44% lower at 6,681.46 and 46,706.30, respectively.

Decline in Tech Stocks

Big Tech stocks such as Microsoft Corp., Oracle Corp., Nvidia Corp., and Google parent Alphabet Inc. slipped in the early minutes of trade. Tech stocks have been under pressure due to concerns over the impact of artificial intelligence on their businesses.

Market Analysis

"Major indices are facing selling pressure this week," Craig Johnson at Piper Sandler told Bloomberg. He advised investors to prioritise good risk-reward setups, "potentially after a healthy pullback within this bull market." This suggests that the current decline in the market may be a buying opportunity for investors who are looking for long-term investing opportunities.

Stock Performance

In the first hour of trade, Palantir’s scrip traded 1.90% lower at $171.75, Microsoft’s share declined 0.51%, while Oracle and Nvidia traded 3.26% and 3.10% lower, respectively. The decline in these stocks has had a significant impact on the overall market, with the Nasdaq Composite index being hit the hardest.

Commodity Prices

After the market opened, spot gold and crude oil prices ticked higher. US spot gold rose 0.43% to trade at $3,994.51 an ounce, whereas the West Texas Intermediate rose 0.59% to $59.82 a barrel and Brent Crude rose 0.60% to trade at $63.74 a barrel. The increase in gold prices and crude oil prices has been driven by concerns over global economic growth and geopolitical tensions.

Currency and Bond Markets

The Bloomberg Dollar Spot Index fell 0.1%, while the Euro rose 0.2% to $1.1575. The British pound was little changed at $1.3147 and the Japanese yen fell 0.2% to 153.31 per dollar. The decline in the US dollar has had a significant impact on the currency market, with investors looking for alternative investment opportunities.

Cryptocurrency Market

Bitcoin, the world’s largest traded cryptocurrency, fell 0.6% to $100,447.39. The decline in Bitcoin price has been driven by concerns over regulatory uncertainty and market volatility. Moreover, the yield on 10-year Treasuries advanced two basis points to 4.10%.

Impact on Indian Investors

The decline in the US stock market has had a significant impact on Indian investors, who have been investing in US stocks through mutual funds and other investment vehicles. Indian investors who are looking to invest in the US stock market should consider the current market trends and investment strategies to minimize their risks.

Conclusion

In conclusion, the US stock market is facing a decline, led by a drop in artificial intelligence-linked tech companies. The decline in the market has had a significant impact on Indian investors, who should consider the current market trends and investment strategies to minimize their risks. Indian investors who are looking for long-term investing opportunities should consider investing in diversified portfolios that include a mix of stocks, bonds, and other investment vehicles.