The Nasdaq Composite (^IXIC -2.70%) is currently in market correction territory, meaning the index is more than 10% below its recent bull-market high. However, most Wall Street analysts see the decline as a good opportunity to buy shares of Nvidia (NVDA -1.51%) and AppLovin (APP 4.03%).
After many artificial intelligence (AI) companies recently led the Nasdaq Composite (^IXIC -2.70%) into correction territory, it's time to start thinking about what will happen next. Many are worried that an economic slowdown triggered by unknowns around tariffs could slow AI investments and hurt many of these companies.
The markets aren't faring any better as of mid-morning trading. In fact, stocks have widened their losses, with the Dow Jones Industrial Average now off by over 400 points.
CoreWeave has priced its initial public offering at $40 per share, less than the expected range of $47 to $55. The Nvidia-backed cloud computing company aims to raise approximately $1.5 billion in what has become the largest technology offering in the United States since 2021.
8am: US stocks set to extend loss US stock futures pointed to a slightly weaker start ahead of the opening bell on Friday, extending Thursday's losses on the back of intensifying tariff talks. Nasdaq futures were down 0.27%, while those for the S&P 500 and the Dow Jones were down by 0.15% and 0.13%.
The tech-heavy Nasdaq-100 index is down by more than 10% from the all-time high it set last month, but it was down by as much as 13% earlier in March. A broad sell-off swept the U.S. stock market as historically high valuations ran up against rising fears and uncertainties about tariffs, trade wars, and the macroeconomic outlook, triggering a risk-off sentiment among investors.
The markets have stemmed their losses and appear to be trying to turn positive. Stocks have been under pressure in response to President Trump's decision to stick 25% tariffs on autos not made in the U.S.A.
After stellar performances in 2023 and 2024 that resulted in a two-year gain of 84.5%, the Nasdaq Composite fell as low as 17,303.01 on March 13 -- a drop of 14.2% drop from the high of 20,173.89 it set on Dec. 16. With that downturn exceeding 10%, the index officially entered correction territory.
Every so often, Wall Street sends a not-so-subtle reminder to investors that stocks can move in both directions.
The Nasdaq, an index that roared higher over the past two years, spent most of March doing just the opposite. The benchmark slid into correction territory earlier in the month, meaning it fell more than 10% since its most recent high back in December.
The exchange-traded funds tracking the S&P 500 index fell again, whereas the one tracking the Nasdaq 100 continues to remain below its 200-day average as President Donald Trump‘s tariff announcements continue to make headlines.
The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index remained in the “Fear” zone on Wednesday.