Investors continued to sell off tech stocks while favoring traditional companies, causing the U.S. stock market to experience fluctuations. The NASDAQ opened lower by 257 points, briefly dropping below the 19,000-point mark, losing up to 329 points before narrowing the loss to 73 points, closing at 19,088. The S&P 500 fell by 9 points to 5,836, while the Dow Jones Industrial Average, after opening lower, rebounded to close up 358 points or 0.9% at 42,297.
Construction equipment giant Caterpillar (CAT) and UnitedHealth (UNH) both rose over 3%, with JPMorgan Chase (JPM) gaining nearly 2%. The White House's announcement of new restrictions on AI exports affected NVIDIA (NVDA) and Palantir (PLTR), causing them to fall by 2% and 3.4%, respectively. Apple (AAPL, Financial) slid 1%, while Tesla (TSLA) recovered from early losses to close over 2% higher.
Rising oil prices negatively impacted airline stocks, with American Airlines (AAL) down 4% and United Airlines (UAL) dropping more than 2%. Apparel company Abercrombie & Fitch (ANF) revised its quarterly and annual sales forecasts upwards, but slower growth led to a 15.7% drop in its stock. Edison International (EIX) fell 12% amid ongoing implications regarding its role in California wildfires, marking its sixth consecutive day of declines.
Investors anticipate that corporate earnings for the fourth quarter will stabilize the market. Major banks, including Citigroup (C), Goldman Sachs (GS), and JPMorgan Chase (JPM), are set to announce their earnings midweek, followed by Morgan Stanley (MS) and Bank of America (BAC) later in the week.
