NEW YORK — U.S. equities closed lower Wednesday, July 29, with major indices posting broad declines. The Nasdaq fell 1.7 percent, settling at 24,443. The S&P 500 dropped 1.5 percent to 7,316, its largest single-day percentage decline in two weeks. The Dow Jones Industrial Average fell 2.2 percent to 51,594, extending its losing streak to three consecutive sessions.
Technology and growth stocks led the retreat. Nvidia shares fell 3.6 percent to $190.01, one of the steepest declines among large-cap tech names. Tesla closed down 3.0 percent at $298.32, its lowest price in over a month.
Nvidia's pullback follows a strong run—the stock had gained more than 15 percent over the prior three months—driven by robust demand for its artificial intelligence chips. Wednesday's decline reflects investor caution over valuation and profit-taking after that run.
Tesla has faced sustained pressure from rising competition in the global electric vehicle market, particularly from Asian manufacturers. Analyst concerns about slowing growth in China compound the pressure. The company's quarterly delivery figures, released in early July, showed a sequential dip in vehicle shipments.
Not all tech stocks moved lower. Alphabet, parent company of Google, rose 0.9 percent to $336.71, bucking the broader trend. The relative strength points to selective buying favoring companies with diverse revenue streams in cloud computing and advertising over pure hardware plays.
Federal Reserve Chair Kevin Warsh has maintained a vigilant stance on inflation, saying rate cuts are "not appropriate" until inflation shows sustained progress toward 2 percent. Higher-for-longer rates weigh on corporate borrowing costs, equity valuations and overall economic activity.
Other major tech names saw modest declines. Apple dropped 0.6 percent to $338.19 and Microsoft fell 0.7 percent to $390.54. Their relative stability against Nvidia and Tesla reflects a flight to quality within mega-cap tech—names with strong balance sheets that tend to hold better during uncertainty.
Amazon dropped 1.8 percent to $226.65, and Meta Platforms fell 1.3 percent to $585.61, underscoring broad caution toward large-cap technology even among companies with strong cloud or advertising businesses.
The semiconductor sector will remain under scrutiny Thursday, July 30, as earnings season continues. Any developments on AI chip demand, new product announcements or supply chain updates from key players could move the entire group. Consumer discretionary names, including Tesla, will draw attention alongside broader consumer spending data.
