US stock market crashes today: Why Nvidia, Intel, Netflix, and Palantir stocks crash today: US stock market in deep red as Nasdaq sinks 1.7% and Dow drops 555 points
Nvidia shut down $189It was down about 0.5% on massive volume of 79 million shares. Intel lost 2.3% to approx. 47 dollars. Netflix is down almost 5% $75.71. Palantir is down more than 6% $127.50It extends recent losses in AI-related software stocks.
This market movement was not random. Strong US economic data, rising Treasury yield concerns, sector rotation and uncertainty about the Federal Reserve’s interest rate cuts were effective in this. The tech sector, especially artificial intelligence and cloud software stocks, is facing renewed valuation pressure as Wall Street reassessess growth expectations in 2025.
Why did the US stock market crash today?
Thursday’s stock market sell-off reflected a clear sector rotation. Investors shifted money into cyclical stocks such as industrials, financials, energy and retail. Shares of Walmart rose about 3%, while Boeing gained about 2%.
Meanwhile, major tech stocks also weakened. There were major declines in the group called the “Magnificent Seven”. Amazon fell almost 3%. Software names were hit even harder.
The iShares Expanded Technology Software Sector ETF (IGV) is down 3% and is now roughly 32% below recent highIt shows the depth of the correction in software stocks.
Market strategists say this rotation is tied to confidence in a resilient U.S. economy. Stronger growth reduces the urgency for the Federal Reserve to cut interest rates. This shifts investors’ preference for companies that benefit from economic growth rather than long-term growth stocks that are priced based on future earnings.
Strong US employment report changes Fed rate cut outlook
The most important catalyst behind the stock market volatility was the latest U.S. employment report. Economy added 130,000 jobs last monthwell above expectations. Unemployment rate dropped from 4.4% to 4.3%.
This strong labor market data reassured investors of economic stability. But this also complicated expectations for a Fed rate cut.
If inflation remains stable and the labor market remains solid, the Fed may postpone interest rate cuts. Higher interest rates often hurt high-growth technology stocks because their valuations depend heavily on future earnings discounted at current rates.
This shift in interest rate expectations has put heavy pressure on AI stocks, semiconductor stocks, and streaming stocks.
Why are Nvidia shares falling today?
Despite being one of the strongest performers in the AI boom, Nvidia shares are in decline. The stock is trading nearby $189It is well above the 52-week low of $86.62 but below the recent high of $212.
The key issue is valuation sensitivity. Nvidia is seen as the leading AI chip stock. But when bond yields rise or interest rate cut expectations fade, investors often cut their positions in high-multiple semiconductor names.
The current pullback appears to be linked to macroeconomic factors rather than company-specific weakness. However, the broader profit making of artificial intelligence has strengthened this move.
Intel shares fall on semiconductor pressure
Intel shares fell about 2.4% to $47. The broader semiconductor sector has weakened as investors turn to cyclical industries.
Unlike Nvidia, Intel is still in the process of restructuring. The stock remains below its 52-week high of $54.60. When markets become cautious, companies in transition often see sharper selling pressure.
Investors are also monitoring capital spending trends and global chip demand as the AI cycle matures.
Why did Netflix shares drop almost 5%?
Netflix shares fell nearly 5% to about $75.71. Growth and flow stocks tend to trade like long-term assets. This means they are more sensitive to interest rate expectations.
When Treasury yields rise or interest rate cuts are pushed further, streaming stocks and tech platforms often fall.
There were no significant negative headlines specific to the company. Instead, the move reflects broader weakness in fast-growing technology stocks.
Palantir shares fall as AI software stocks fall
Palantir fell more than 6%, continuing a volatile rise in AI software names. The company is seen as a major beneficiary of AI spending.
However, concerns about AI-driven disruptions in the broader software industry have created uncertainty. Some investors worry that rapid AI innovation could pressure traditional software revenue models.
The stock remains well above its 52-week low of $66.12 but well below its 52-week high of $207.52, highlighting the volatility in AI shares.
Broader software sales have expanded beyond Palantir. Networking giant Cisco tumbled 11% after releasing disappointing quarterly guidance.
Even companies reporting strong earnings were not immune. AppLovin shares fell sharply despite falling short of expectations; This shows how weak the risk appetite in software stocks has become.
This suggests that the current sell-off is driven by macro conditions and industry positioning rather than individual earnings performance.
Investors are now closely monitoring the upcoming Consumer Price Index (CPI) data. Economists expect headline and core CPI to increase 0.3% per month.
If inflation comes in hotter than expected, that could further reduce the likelihood of a Fed rate cut in the near term. This will likely put further pressure on growth stocks, including AI stocks, semiconductor stocks, and streaming companies.
On the other hand, a softer inflation reading could lead to a relief rally in tech stocks.
Bitcoin and broader risk assets also under pressure
Bitcoin is trading nearby $65,738fell about 2.5%. Risk assets generally experienced volatility as investors reassessed liquidity conditions and monetary policy.
Historical data shows that in previous four-year cycles, Bitcoin has experienced peak-to-trough declines of up to 75%. Analysts warn that volatility could continue as the recovery continues from recent lows.
Current market movement reflects three powerful forces:
First, a resilient U.S. economy.
Second, uncertainty about the Federal Reserve’s interest rate cuts.
Third, the rotation of investors from technology stocks to cyclical sectors.
For Nvidia, Intel, Netflix and Palantir, sales appear to be tied to macroeconomic shifts rather than company-specific disruption.
More broadly, the stock market remains historically strong. Dow still near record territory. The S&P 500 remains higher despite a three-day decline.
But fast-growing tech stocks are adapting to a new reality. Less interest rate deduction. Higher bond yields. And stricter valuation discipline.
In the near term, inflation data and Federal Reserve signals will likely determine whether the correction in tech stocks will deepen or stabilize.
