S&P500: Meta’s Chip Plans Trigger Nvidia Selloff—Tech Stocks Rebalancing Today

Nasdaq Retreats as Nvidia Drop Pressures AI Stocks in Mid-Morning Trade

The Nasdaq was under pressure by 14:47 GMT, down about 0.9% after Monday’s strong rebound. The S&P 500 eased roughly 0.4%, while the Dow held just above the flatline as traders stepped back from the big AI winners that powered the prior session. This wasn’t a broad pullback — it was targeted selling in the names that ran the hardest.

Is Tech Just Cooling Off After Monday’s Surge?

Pretty much. Nvidia slid more than 5% after reports that Meta may shift billions in spending toward Alphabet’s AI chips. Alphabet shares jumped more than 2% on the news, but the broader tech sector sank over 2% as traders took a breather. AMD, Oracle and Super Micro all weakened.

After Monday’s 2.7% Nasdaq pop — its best day since May — some profit-taking was expected. Buyers weren’t fleeing; they were simply trimming risk.

How Did the Sector Board Look by Mid-Morning?

Most sectors held firm. Health care led with a gain of roughly 1.6%. Communication services, consumer staples, materials and financials all posted moderate strength. Industrials were unchanged. Energy slipped about half a percent, and utilities edged lower. Consumer discretionary dipped slightly, while real estate saw a small gain. The move was concentrated in tech — everything else looked orderly.

What Stood Out in Retail and Consumer Stocks?

Retail delivered plenty of action. Kohl’s surged after beating earnings expectations. Best Buy raised its full-year outlook as shoppers upgraded devices, helping lift sentiment in consumer electronics.

Dick’s Sporting Goods fell almost 9% after announcing store closures tied to Foot Locker and flagging weaker comp sales for the quarter. Burlington also slipped after mixed results. Retail wasn’t moving as a group — it was pure stock-by-stock reaction.

Which Other Names Moved on Earnings and News?

Keysight rallied after strong earnings and a new $1.5 billion buyback plan. Symbotic, Fluence Energy and Pony AI jumped on upbeat revenue and guidance.

On the downside, Coinbase ranked among the session’s biggest decliners. Estee Lauder slid following a downgrade that questioned margin recovery potential. Plenty of individual catalysts were in play across the board.

Is the Fed Still Driving Sentiment Right Now?

Yes. Traders continue to lean on expectations for a December rate cut, with odds above 80% after comments from Fed officials suggesting room to ease. ADP’s update pointing to rising private-sector job losses only reinforced the idea. That’s helping keep downside pressure limited even with tech wobbling.

Bottom Line: What’s the Setup for the Rest of the Day?

The market wants to keep the year-end narrative alive, but tech remains the swing factor. If Nvidia steadies and rate-cut expectations hold, buyers could step back in. For now, investors are being selective, not defensive.

More Information in our Economic Calendar.