Market Wrap | U.S. Markets Slide As Tesla Soars, NVIDIA Falters, And Retail Sales Defy Expectations

On December 17th, U.S. markets saw a collective downturn. The S&P 500 fell by 0.39%, settling at 6050.61 points, the Dow Jones slipped 0.61% to 43449.90 points, and the Nasdaq decreased by 0.32% to close at 20109.06 points. The downturn was evident, with Syntec Optics surging 98.32% and Akso Health rising 57.27%, while Tenaya Therapeutics saw a sharp decline of 51.04%.

Major U.S. tech firms continue to shape the market dynamics. Companies like NVIDIA and Broadcom have demonstrated leadership within the AI infrastructure sector. Innovations in AI are poised to redefine global technological advancements, although markets outside the U.S. seem to be lagging in this development.

Recent economic data reveal that U.S. retail sales in November surpassed expectations, climbing 0.7% over the previous month. This performance suggests a robust consumer spending environment, yet it has prompted caution due to shifting Federal Reserve policies. Investors anticipate a 25-basis-point rate cut in the year-end Federal Reserve meeting, keeping a close watch on upcoming announcements for future rate decisions.

Individual stocks have attracted spotlight attention; Tesla reached new heights, prompting Wedbush to increase its price target from $400 to $515. Conversely, NVIDIA has experienced a downturn for three consecutive days, signaling a potential shift in semiconductor market sentiment.

Microsoft has announced potential layoffs of up to 15,000 employees in early 2025. Meanwhile, Apple faces legal hurdles overseas with allegations of illicit mineral usage from the Democratic Republic of Congo, questioning aspects of its supply chain ethics.

The competitive dynamic in tech sees significant developments as OpenAI expands its ChatGPT search capabilities. This extension could intensify competition with Google, challenging its dominance in the market.