Investing.com– U.S. stock index futures moved little on Tuesday evening, steadying after growing uncertainty over slower interest rate cuts and steep losses in Nvidia weighed heavily on Wall Street.
Losses in NVIDIA Corporation (NASDAQ:NVDA) pressured the broader technology sector, as did a spike in Treasury yields after economic data pointed to sustained inflationary pressures, furthering the case for a slower pace of monetary easing by the Federal Reserve.
S&P 500 Futures fell 0.1% to 5,950.75 points, while Nasdaq 100 Futures steadied at 21,358.50 points by 18:16 ET (23:1 GMT). Dow Jones Futures fell slightly to 42,778.0 points.
Nvidia slides after Huang speaks at CES 2025
Nvidia was by far the worst performing major technology stock on Tuesday, sliding 6.2% from record highs. The stock rose marginally in aftermarket trade.
CEO Jensen Huang unveiled a flurry of new products at the Consumer Electronics Show in Las Vegas on Monday, including a new range of graphics chips, in-house artificial intelligence models, more tie-ups with automakers on self-driving, and even a desktop supercomputer. Huang also said the firm’s next generation of Blackwell AI chips were now in full production.
But while the update does bode well for Nvidia’s long-term prospects, some analysts noted that it did little to spur the company’s near-term outlook.
A bulk of the announcement also appeared to be priced into the stock, given that it hit a series of record highs in the run-up to Huang’s address.
The stock was walloped by a heavy dose of profit-taking, after Nvidia tripled in market value through 2024.
Other major technology stocks also retreated, with Apple Inc (NASDAQ:AAPL) losing over 1% after the stock was slapped with its second sell rating in three months. Tesla Inc (NASDAQ:TSLA) slid 4.1% after BofA downgraded the stock on concerns over stretched valuations and potential difficulties in meeting its lofty AI ambitions.
Wall St spooked by inflation, rate jitters
Wall Street indexes slid on Tuesday, pressured by a spike in Treasury yields as stronger-than-expected job openings data pointed to persistent strength in the labor market.
Stronger-than-expected purchasing managers index data also pushed up concerns over sticky inflation.
Sticky inflation and strength in the labor market are expected to give the Fed less impetus to cut interest rates sharply in 2025, with the bank having warned as much during its December meeting.
Fed officials reiterated this stance over the weekend, further rattling investor sentiment.
Focus this week is squarely on nonfarm payrolls data for December, due on Friday, for more cues on interest rates.
The S&P 500 fell 1.1% to 5,909.50 points, while the NASDAQ Composite slid 1.9% to 19,491.65 points on Tuesday. The Dow Jones Industrial Average fell 0.4% to 42,529.28 points.