Several stocks fell after investors took profits off the table ahead of the Federal Reserve's Jackson Hole symposium. Nvidia, AMD, Broadcom, Tesla, Meta Platforms, and Netflix were under pressure due to the "AI trade." Vertiv, Quest Resource, Kratos, Limbach, and American Superconductor shares also declined. The market overreacts to news, and big price drops can present buying opportunities for high-quality stocks.
Title: Market Volatility: Nvidia and Tech Stocks Fall Ahead of Federal Reserve Meeting
Several major tech stocks experienced significant declines on July 2, 2025, following a sell-off in the afternoon session as investors took profits off the table ahead of the Federal Reserve's Jackson Hole symposium. The market downturn was largely attributed to a significant sell-off in megacap tech and chipmaker shares, including Nvidia (NASDAQ:NVDA), Advanced Micro Devices (AMD), and Broadcom (AVGO). Other major tech-related companies like Tesla (TSLA), Meta Platforms (FB), and Netflix (NFLX) were also under pressure.
The key reason for this trend is that much of the recent market gains have been concentrated in the "AI trade," which includes these large technology and semiconductor companies. Investors are locking in some gains ahead of more definitive feedback from the Federal Reserve, which could provide clearer signals on future monetary policy.
Nvidia, for instance, fell 3.5% in the afternoon session. The stock has been highly volatile, with 21 moves greater than 5% over the last year. Today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. Nvidia is up 27.2% since the beginning of the year, and at $175.99 per share, it is trading close to its 52-week high of $183.16 from August 2025. Investors who bought $1,000 worth of Nvidia’s shares 5 years ago would now be looking at an investment worth $14,498 [1].
Similarly, AMD fell 5.5%, while Broadcom dropped 4.3%. Other semiconductor and technology stocks like Amtech ASYS, Marvell Technology MRVL, and Semtech SMTC also experienced notable declines. The market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks [2].
In the context of the broader market, these price movements are a reminder of the ongoing volatility in the tech sector. Investors should remain cautious and conduct thorough due diligence before making any investment decisions. The Federal Reserve's Jackson Hole symposium later in the week is expected to provide more clarity on future monetary policy, which could influence market sentiment.
References
1. [https://finance.yahoo.com/news/why-nvidia-nvda-stock-falling-195052034.html](https://finance.yahoo.com/news/why-nvidia-nvda-stock-falling-195052034.html)
2. [https://www.tradingview.com/news/stockstory:ee8ff210e094b:0-amd-amtech-broadcom-marvell-technology-and-semtech-shares-are-falling-what-you-need-to-know/](https://www.tradingview.com/news/stockstory:ee8ff210e094b:0-amd-amtech-broadcom-marvell-technology-and-semtech-shares-are-falling-what-you-need-to-know/)
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