Stocks Still in Correction Territory as Sell-Off Continues
U.S. stocks continue to decline after a two-day bullish streak early this week. The market is expected to decline further as it opens for Wednesday.
The Nasdaq Composite is leading the break from two days of gains for the stock market with a 1.71% drop. The S&P 500 fell 1.07%, and the Dow lost 262 points, or 0.62%. The market is still correcting after rising rapidly in late 2024 and early 2025 after the U.S. elections and then dropping dramatically in recent weeks.
Later today, the Federal Reserve will issue its decision on interest rates, determining whether to cut them further or keep them where they are. The likelihood that they will make no changes is high, and if that is the case, then the market is prone to dip again at the news.
Stock Movements to Note
As the market drops further, erasing much of its gains for the week so far, several key stocks are worth noting for investors. PepsiCo (PEP) is one of the stocks that we expect to do well amid tariff concerns and the continuing trade war. As consumer goods prices for groceries stay mostly flat, PEP could do well, since consumers are likely to focus their spending on essentials. This stock dropped 1.55%, however, on Tuesday. It is listed by several investing sources as a great stock to buy ahead of a potential recession.
Tesla (TSLA) continues its sharp decline, falling 5.43% on Tuesday as tariff concerns could affect the automotive industry in a big way very soon. Many investors expected what they called a “Trump bump” for this stock, where Tesla CEO Elon Musk would see his company benefit from his close association with U.S. President Donald Trump. That does not seem to be the case right now, and the problem comes down to decreasing Tesla sales globally as well as a Musk’s lack of focus on maintaining his electric car company.
Nvidia (NVDA) fell yesterday by more than 3% but is now up by 1.09% in premarket trading for Wednesday. This stock will likely last through any possible recession and will continue to ride the high from the AI market surge. The company’s products help power this generation of AI technology, and they are investing heavily in development to ensure that they power the next generation of AI as well, future proofing their company and attracting customers globally so that they are not as affected by U.S. tariff concerns as other tech companies.
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