The NASDAQ index experienced a decline of 4.0%, marking its largest one-day drop since September 2022. It traded down to session lows of -904 points before recovering slightly to close down 727.90 points at 17,291.82.
The S&P index fell by 2.70%, closing at 5,614.56, after hitting lows of -206.10 points. This represented the worst decline of the year and the first close below the 200-day moving average since October.
Dow Jones Declines
The Dow industrial average dropped 2.08%, closing at 41,911.71, below its 200-day moving average for the first time since November.
Among the Magnificent 7, Tesla declined by 15.43%, and other notable declines included Nvidia at -5.07% and Apple at -4.85%.
Additional major losers included Robinhood Markets at -19.79% and MicroStrategy at -16.68%. Other declines involved Tesla, Trump Media & Technology Group, and Bitcoin Futures, which fell by 15.43%, 11.47%, and 9.57% respectively.
Such a broad and sharp selloff across the major indices signals a clear shift in sentiment. The depth of the losses, particularly in technology-focused equities, indicates a break from the steady optimism that had driven the market higher in recent months. A 4.0% drop in the NASDAQ is not a minor retreat—it reflects a level of volatility unseen since late 2022. The fact that selling pressure drove the index to session lows before a modest recovery suggests an initial panic reaction, followed by some stabilisation as traders recalibrated. However, its closing figure still shows an overall lack of buyers willing to step in aggressively.
A similar pattern emerged in the S&P 500 and Dow Jones Industrial Average, with both breaking below their respective 200-day moving averages. The S&P’s 2.70% decline marks its weakest session of the year, while the Dow’s first close beneath this technical support since November underscores a broad retreat. Typically, a sustained presence above the 200-day moving average supports long-term bullish sentiment—falling below it raises concerns about market momentum shifting downward.
High Growth Stocks Hit Hard
Losses were particularly harsh in companies linked to high-growth, high-valuation narratives. The steep drop in Tesla shares, plummeting over 15%, reflects a loss of confidence that had been steadily eroding in recent months. Nvidia, another favourite among traders looking for outsized gains, shed over 5%, while Apple followed with a nearly 5% decline of its own. A downturn of this magnitude in some of the market’s largest companies adds to the weight of market-wide selling pressure.
Beyond the largest names, smaller momentum-driven stocks suffered even more. The selloff in Robinhood, down nearly 20%, indicates a retreat from riskier names, particularly those associated with retail speculation. The drop in MicroStrategy—historically tied to movements in Bitcoin—also aligns with broader weakness in digital assets.
Bitcoin Futures themselves posted a 9.57% pullback, reinforcing the selloff across speculative areas. That decline, combined with the loss in Trump Media & Technology Group, points to a retrenchment in assets that tend to swing aggressively on sentiment shifts.
Considering these sharp downward moves, attention now turns to how risk appetite develops in the coming sessions. When markets experience declines of this magnitude, there is often a reassessment of exposure, particularly in leveraged positions. If confidence weakens further, traders may adjust expectations for near-term rallies and instead look for confirmation of stability before increasing exposure again.
