Thursday is a potential turning point for the stock market’s sentiment. Alphabet (GOOG) led the decline with a 5.03% drop, followed by Meta Platforms (META), Microsoft (MSFT), Apple (AAPL), and Amazon (AMZN).
Markets did not spare the artificial intelligence chip favorites, either. Nvidia (NVDA) and Broadcom (AVGO) declined. Selling also intensified for AMD, which delayed the launch of its CPU refresh from July 31, 2024, to mid-August.
Is this just a dip or the beginning of a bear market?
Valuations for technology stocks are highly stretched and strong quarterly results may not reverse the negative sentiment. Still, investors may look forward to strong growth from Nvidia’s earnings report in a few weeks.
Why the Market’s Move Changed
Tesla reversed the already tiring bullish market. The firm posted notably weaker revenue expectations in its forecast after reporting Q2 results. However, it kept shareholders hopeful. The company expects to produce new, cheaper electric vehicles in the first half of 2025. The robotaxis plans, which CEO Elon Musk promised for August 8, are delayed. Musk revised the launch date to October 10, citing a couple of other things (for new products) that day, too.
The brief rebound in EV stocks over the last few weeks is now over. Renewed selling in this sector may spread to other overvalued areas of the stock market.
