Wall Street closes sharply lower as tech rout deepens, Tesla and Nvidia lead the selloff

Executive summary: Wall Street ended the session under heavy pressure, with the Nasdaq Composite down -4.9% and the S&P 500 off -2.4% as a broad unwind hit technology, AI chips and growth-sensitive names. Tesla plunged -20.2%, Nvidia fell -10.4%, and the SOXX chip ETF sank -16.3%, while Apple rose +3.8% and defensive pockets such as gold, platinum, banks and defence stocks held up better. The move came alongside weaker crude, natural gas and a softer risk tone in bitcoin, underscoring a rotation away from the market’s most crowded growth trades.

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Current prices and change versus the prior close

Wall Street closes with a sharp risk-off tone

US equities finished lower across the board, led by a steep selloff in technology and AI-linked shares. The Nasdaq Composite closed at 24,442.941, down -4.9% from the prior close, while the S&P 500 ended at 7,316.15, down -2.4%. The Dow Jones fell to 51,594.14, down -1.2%, and the Russell 2000 slipped to 2,906.315, down -1.8%.

The session showed a clear split between pressure on high-multiple growth stocks and relative resilience in a few defensive or value-oriented corners of the market.

Biggest losers: Tesla, Nvidia and the chip complex

The most dramatic move came in Tesla, which dropped to $298.32 from $374.01, a decline of -20.2%. Nvidia fell to $190.01, down -10.4%, while the broader SOXX AI and chips basket sank to $465, down -16.3%.

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Other notable decliners included:

• Amazon, down -7.4% to $226.65
• Meta, down -6.6% to $585.61
• XLK US tech sector, down -7.6% to $166.57
• CARZ global autos, down -9.2% to $96.764

The scale of the declines suggests a broad de-risking in the market’s most crowded growth and AI-related trades.

Relative winners: Apple, banks, defence and precious metals

Not every major stock moved lower. Apple rose to $338.19, up +3.8%, and Microsoft edged higher to $390.54, up +0.1%. In sector ETFs, XLF US banks/financials gained to $56.68, up +1.1%, and ITA US defence stocks advanced to $236.26, up +2.2%.

Precious metals also held firmer. Gold rose to $4,112.3, up +1.1%, while platinum climbed to $1,618.8, up +1.6%. Palladium added +0.8%.

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Commodities, crypto and FX point to a cautious backdrop

Risk assets were broadly softer. Bitcoin fell to $63,535.51, down -1.2%, while Ether rose modestly to $1,885.3, up +0.6%. In commodities, WTI crude dropped to $84.68, down -5.2%, and natural gas fell to $2.722, down -5.2%. Silver also weakened, down -1.8% to $57.575.

In FX, the USD/JPY rate moved to 163.531, up +0.3%, while USD/CNY eased to 6.7544, down -0.3%.

What the move says about market leadership

The day’s action suggests investors were reducing exposure to the most expensive and momentum-driven parts of the market, especially AI hardware, electric vehicles and large-cap internet names. At the same time, money appeared to rotate toward areas seen as more insulated from growth volatility, including banks, defence and gold.

The fact that the Nasdaq fell much more than the Dow and S&P 500 indicates the pressure was concentrated rather than universal, but the size of the declines in Tesla, Nvidia and SOXX makes this a notable reset for the technology leadership trade.

Why it matters

When the market’s biggest winners fall this hard in one session, it can change near-term sentiment quickly. The move may force portfolio rebalancing, raise volatility in index-heavy funds, and test whether investors are willing to keep paying premium valuations for AI and growth exposure. It also highlights how quickly leadership can shift when traders move from chasing earnings and innovation themes to prioritizing balance-sheet strength, cash flow and relative safety.

Historical context for the size of the move

A one-day drop of more than -4% in the Nasdaq is a significant market event, especially when paired with double-digit losses in a major megacap and chip names. Moves of this scale often reflect a repricing of expectations rather than a single-stock story, and they can mark a short-term turning point in sector leadership if follow-through selling continues.

Confirmed facts and market interpretation

Confirmed: US equities closed lower, the Nasdaq and S&P 500 posted broad declines, Tesla and Nvidia were among the worst performers, and gold, banks and defence stocks outperformed relative to the rest of the market.

Market interpretation: The pattern looks like a rotation out of crowded AI and growth trades and into safer or more defensive exposures, possibly driven by valuation concerns, positioning pressure or a broader risk-off mood. The price action alone does not prove a single catalyst, but it clearly shows investors were willing to sell leadership names aggressively.

Market background

Context links: financial markets, stock market indices, bond markets, foreign exchange, commodities.

Confirmed facts versus interpretation

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