Nasdaq and S&P500: Tech Stocks Slide as AI Trade Falters, Dow Inches Up

Tech Pressure Weighs on S&P 500 and Nasdaq; Dow Holds in Positive Territory

U.S. stocks traded mixed on Tuesday, with the S&P 500 and Nasdaq Composite moving lower under pressure from the technology sector, while the Dow Jones Industrial Average edged higher, supported by gains in healthcare, consumer staples, and select blue-chip names.

At 14:53 GMT, the Dow Jones Industrial Average is trading 47,424.25, up 55.62 points or +0.12%. The S&P 500 Index is at 6,816.63, down 15.80 points or -0.23%. The Nasdaq Composite is trading 23,392.12, down 135.05 points or -0.57%.

Is the AI Trade Losing Its Edge?

Technology stocks weighed on the broader market after fresh concerns emerged about the strength of the AI trade. CoreWeave dropped 9% after issuing full-year revenue guidance between $5.05 billion and $5.15 billion—below the $5.29 billion analysts were looking for. Nvidia fell 2.96% after SoftBank disclosed it had sold its entire stake in the chipmaker for $5.83 billion, adding to the pressure on AI names.

The broader tech sector followed suit, with the Technology Select Sector SPDR Fund (XLK) falling 0.6%, reflecting the cautious tone across high-growth segments.

Which Dow Stocks Are Helping Keep the Index in Positive Territory?

Despite weakness in tech, several Dow components held up well. Nike led the gainers with a 3.11% rise, followed by Merck at +2.16% and McDonald’s at +1.31%. Apple added 1.56%, Chevron gained 1.41%, and Coca-Cola rose 0.58%.

Procter & Gamble, IBM, and Johnson & Johnson also posted modest gains. These performances helped counteract declines in Caterpillar, down 1.61%, and Cisco, which dropped 1.01%. Nvidia was the weakest Dow performer, sliding nearly 3%.

Which Stocks Are Moving Sharply on Earnings and News?

Several non-Dow names saw significant moves. BigBear.ai soared 16% after beating Q3 revenue expectations and reaffirming its full-year outlook. RealReal jumped 16.6% following a guidance raise and stronger-than-expected third-quarter results. Rocket Lab advanced 8% after its earnings beat, reporting $155 million in revenue versus the $152 million expected.

XPeng gained 4.8% after unveiling its next-generation humanoid robot and announcing plans to launch robotaxis in 2026. On the downside, Beyond Meat fell 6.7% after forecasting Q4 revenue between $60 million and $65 million, below analyst estimates. Rigetti Computing lost 3.8% following a revenue miss.

What Are Traders Watching Next?

With AI sentiment under pressure and tech names fading, traders are watching for signs of sector rotation and stability in blue-chip stocks. The resolution of the government shutdown has also removed a major short-term risk and paves the way for delayed economic reports to be released. That clarity may prove critical for the Fed as it prepares for its December policy decision, adding another layer of importance to upcoming data.

More Information in our Economic Calendar.