The Nasdaq led the major indexes down, falling 1.9%. The tech-weighted index now is testing its 21-day moving average. The S&P tumbled 1.2% and dropped below its 21-day moving average.
Meanwhile, the Dow Jones index fell 0.8% in early trades. All but four blue chips were in the red, with tech giants Nvidia, Amazon.com (AMZN) and Microsoft (MSFT), leading the downward charge.
Volume on both the New York Stock Exchange and the Nasdaq exchange was higher compared with the same time on Thursday. But decliners outnumbered advancers by roughly 5-to-2 on both.
Small caps on the Russell 2000 snapped a two-day winning streak and sank 1.8%. And the Innovator IBD 50 (FFTY) exchange traded fund fell more than 3%, but remained in a buy zone with an entry at 29.15.
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The yield on the benchmark 10-year Treasury note rose to 4.58%.
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Stock Market Today: Tesla Retreats From Highs
Tesla retreated from its record highs of 488.54 and fell more than 4%. Shares have rallied 81% since Nov. 6 when they gapped up to start the post-election rally. But the strong action has not allowed the stock to form a base or buy point.
Elsewhere, Warren Buffett purchased an additional $28.55 million worth of shares of Verisign (VRSN) over three sessions ending on Dec. 24. Berkshire Hathaway has a total stake of $2.67 billion in the web domain registration company.
Also, a Barron’s report picked Buffett’s Berkshire Hathaway as one of top 10 stocks to watch in 2025 that trade near or below a market multiple. Others include Alphabet (GOOGL), ASML (ASML), Alibaba (BABA), and Citigroup (C). Berkshire stock rose 1.2%.
Dow Jones: Nvidia Stock
Dow stocks are meeting resistance at the 50-day moving average as the year winds down. Nvidia fell below its 50-day moving average but is on track to build a late-stage double bottom base with a buy point of 146.54.
Nvidia is a hedged position on IBD Leaderboard. It is also one of the growth stocks on IBD 50. Shares have been meeting resistance at the 50-day line since Dec. 10.
Apple (AAPL) dropped 1.5% after Wedbush analyst Dan Ives raised the price target to $325 with an outperform rating. This is the second price target hike in a week. On Monday, the analyst raised the price target to $300 citing strong iPhone upgrades in the holiday season.
Apple’s latest artificial intelligence rollout integrates ChatGPT in Siri. Further, Ives thinks Apple could sell 250 million iPhones in 2025 — a historical high. The analyst estimates that around 300 million iPhones worldwide haven’t been upgraded in four years.
Further, Apple is nearing a $4 trillion market cap and would be the first company to achieve the milestone. Shares have to hit 264.62 to reach that valuation. Shares have been rallying since they broke out of a flat base’s buy point of 237.49 in November and are extended.
A few stocks that have surged in recent action showed mixed action. SoundHound AI (SOUN) fell nearly 4% while Rigetti Computing (RGTI) added 2%. D-Wave Quantum (QBTS) plunged while Rocket Lab (RKLB) fell out of orbit. Rocket Lab offers a buy point at 28.10.
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