S&P 500 closes lower as Nvidia pulls down tech sector, Dow briefly touches record

The S&P 500 pulled back on Tuesday, weighed down by Nvidia shares and a broad decline in technology stocks.

The broad market S&P 500 lost 0.59% and closed at 6,411.37, while the Nasdaq Composite fell 1.46% to settle at 21,314.95. The Dow Jones Industrial Average added 10.45 points, or 0.02%, and ended at 44,922.27. The 30-stock index touched a fresh record high during the session, powered by a pop in Home Depot.

Shares of megacap tech and big-name chipmakers declined. Nvidia shares lost 3.5%, while Advanced Micro Devices and Broadcom slipped 5.4% and 3.6%, respectively. Shares of high-flying software stock Palantir dropped more than 9%, making it the S&P 500′s worst performer. Other major tech-related names such as Tesla, Meta Platforms and Netflix were also under pressure.

“The AI trade may not be breaking, but it could be catching its breath. After a 40%+ run for the NASDAQ since April, historically a pause is normal as the market recalibrates around the latest economic data and anticipated Fed policy,” said Jayson Bronchetti, chief investment officer at Lincoln Financial.