According to Bitget market data, the Nasdaq Composite index opened higher on Tuesday but reversed course, extending its decline to 1.09%. The sell-off was led by major technology giants, with Alphabet (Google) tumbling over 6%, Amazon dropping more than 4.5%, and Meta sliding nearly 3%. The retreat came as investors locked in profits after a strong rally in AI-related stocks, while concerns over tighter monetary policy weighed on growth equities.
Tech Megacaps Under Pressure: Profit-Taking and Macro Headwinds
The strong nonfarm payrolls data released earlier reinforced expectations that the Federal Reserve may keep interest rates elevated or even raise them further, pressuring high-valuation growth stocks. The upcoming PCE inflation data due on Thursday is a key reference for the Fed's next move, adding to investor caution. Meanwhile, the US dollar continued to strengthen, further weighing on the technology sector. In contrast, the Dow Jones Industrial Average showed relative resilience, though the overall market remained in a high-level oscillation pattern.
Space Stocks Plunge Amid Broader Risk-Off Sentiment
Alongside the tech sell-off, US space-related stocks also suffered heavy losses. Planet Labs fell more than 4% at one point, Satellogic dropped 6.22%, Redwire declined 8.24%, SpaceX lost 8.92%, Rocket Lab slid 7.10%, and Intuitive Machines fell 5.82%. The broad-based decline in the space sector further fueled risk-aversion, highlighting investors' reduced appetite for riskier assets in the current environment.
Market participants are now closely watching the upcoming PCE inflation data and any signals from the Fed regarding its policy path. With multiple factors at play, US stocks are likely to remain in a volatile adjustment phase in the near term.