Wall Street experienced a downturn as major technology stocks resumed their decline. The S&P 500 took a 1.1% hit, marking another twist in its recent volatile performance. The Dow Jones Industrial Average also fell by 0.6%, shedding 260 points, while the Nasdaq composite dropped 1.7%. Notably, Tesla faced a 5.3% decline, contributing significantly to the market’s negative trend.

The market slump was fueled by concerns surrounding Tesla’s sales outlook due to backlash against its CEO, Elon Musk, and increased competition from other electric vehicle manufacturers like China’s BYD, which unveiled a rapid charging system comparable to refueling a gasoline vehicle. Similarly, Alphabet’s announcement of acquiring cybersecurity firm Wiz for $32 billion led to a 2.2% drop in its stock price.

The decline in Big Tech stocks mirrors a broader market trend where previously high-flying tech companies are now facing substantial corrections amid concerns over overvaluation. Companies heavily involved in AI technology, such as Nvidia, Super Micro Computer, and Palantir Technologies, witnessed notable declines as the market grapples with uncertainties arising from President Donald Trump’s trade policies and their potential impact on the economy.

The Federal Reserve’s upcoming meeting on interest rates adds another layer of complexity to the market dynamics. While expectations lean towards a steady rate decision, the Fed’s future outlook on interest rates, inflation, and economic growth will be closely monitored. Traders anticipate potential rate cuts by the end of 2025 to support economic growth if needed.

Despite the U.S. market’s recent struggles, international markets in Europe and Asia have shown relative resilience, prompting discussions on the possible end of “U.S. exceptionalism.” Japan’s Nikkei 225 rose by 1.2%, while Indonesia’s JSX experienced temporary suspension of trading due to significant losses, reflecting concerns over government initiatives like the Danantara sovereign wealth fund.

In the bond market, the yield on the 10-year U.S. Treasury note dipped slightly. Overall, the market’s response to ongoing economic uncertainties, trade tensions, and Fed policy decisions underscores the intricate interplay of factors shaping Wall Street’s performance in the current financial landscape.