The stock market experienced a downturn on Wednesday, with the Dow Jones Industrial Average dropping after higher-than-expected inflation data was released. Despite this, Nvidia, a leader in artificial intelligence, saw its stock increase, while other major companies like Tesla, Apple, and Microsoft struggled.
Amid the negative market activity, some stocks like Icici Bank and Axon Enterprise held up well near entry points, but overall there were numerous breakdowns across various sectors. The Nasdaq and S&P 500 both fell more than 1%, with certain sectors like real estate and utilities facing greater challenges compared to others.
The inflation data that fueled fears of rising prices also impacted the bond market, with Treasury yields seeing significant increases. The Federal Reserve’s minutes due later in the day were closely monitored for any further policy clues.
Among the major companies, Home Depot and Intel faced significant losses on the Dow Jones, while Nvidia managed to rise despite being in correction territory. The tech sector overall faced challenges, with stocks like Tesla and Microsoft struggling.
In terms of specific stocks, Deckers Outdoor and Hexcel experienced breakdowns, while others like Icici Bank and Axon Enterprise showed strength near buy points, offering potential opportunities for investors.
Overall, the market volatility prompted by inflation concerns and interest rate uncertainty underscores the importance of staying informed and being cautious with investment decisions.
