Dow Jones, S&P 500, and Nasdaq: What Investors Need to Know About the Market’s Next Move

Market Downturn: What’s Next for Dow Jones, S&P 500, and Nasdaq Futures?

Dow Jones futures, S&P 500 futures, and Nasdaq futures experienced a slight dip Monday morning, indicating continued market volatility. Treasury Secretary Scott Bessent emphasized on Sunday that market corrections are “healthy,” a sentiment that may help calm investor concerns about ongoing fluctuations in the market. This week, all eyes are on major players like Nvidia (NVDA), the Federal Reserve, and various Chinese stocks as market participants try to gauge the next potential moves.

Stock Market Struggles Amid Trade Uncertainty

The stock market endured its fourth consecutive week of significant losses, with the last three weeks seeing some attempts at recovery, particularly a small bounce on Friday. One of the primary factors impacting market performance is the uncertainty surrounding Trump tariffs and related geopolitical tensions, which are undermining investor and business confidence.

Market Indexes Experience Major Declines

The Dow Jones dropped 3.1% in the last week, marking its steepest decline in two years. The S&P 500 fell by 2.3%, while the Nasdaq Composite decreased by 2.4%. These declines were particularly severe, as each of the major indexes hit six-month lows. The Russell 2000, which tracks smaller companies, also dropped 1.5%, reaching a seven-month low.

Despite these losses, Friday marked the beginning of an attempted rally in the Nasdaq. If this trend continues, a potential follow-through could be seen as early as Monday. Investors are eagerly watching if the market can stabilize and recover from this prolonged period of turbulence.

Focus on Chinese Stocks and Precious Metals

Amidst the volatility, some sectors are showing resilience. Chinese stocks have remained relatively strong, with notable performances from companies like Alibaba (BABA) and Tencent. Additionally, stocks in the gold and silver sectors, as well as insurers like Warren Buffett’s Berkshire Hathaway (BRKB), have held steady. Several biotech stocks and traditional growth stocks are also showing promising signs, providing some optimism to the market.

Treasury Yields and Oil Prices Stabilize

The 10-year Treasury yield dipped by a single basis point to 4.31%, after initially dropping more significantly. Meanwhile, U.S. crude oil futures increased slightly by 0.2%, reaching $67.18 per barrel.

Growth ETFs Perform Mixed

Among the growth ETFs, the Innovator IBD 50 ETF (FFTY) rebounded by 1.9% last week, signaling some recovery. Conversely, the iShares Expanded Tech-Software Sector ETF (IGV) saw a 1.9% decrease, while the VanEck Vectors Semiconductor ETF (SMH) gained 0.7%, driven by strong performances from Nvidia, Broadcom, and Taiwan Semiconductor. On the other hand, the ARK Innovation ETF (ARKK) suffered a significant loss of 6.5%.

The KraneShares CSI China Internet ETF (KWEB) dipped 0.6%, but managed to close strong, driven by strong performances from Alibaba and Tencent. In contrast, the SPDR S&P Metals & Mining ETF (XME) rose 3%, with Energy Select SPDR ETF (XLE) climbing 2.6%. However, Health Care Select Sector SPDR Fund (XLV) fell 2.9%, and Financial Select SPDR ETF (XLF) dropped by 1.2%.

Nvidia’s GTC Event Sparks Excitement

All eyes are on Nvidia, which is set to hold its GTC (GPU Technology Conference) from March 17-21. Nvidia’s CEO, Jensen Huang, will deliver the keynote on Tuesday at 10 a.m. PT, discussing advancements in agentic AI, robotics, and accelerated computing. Analysts anticipate that Nvidia will unveil its much-anticipated GB300 AI chip at the event, which could drive new enthusiasm in the artificial intelligence (AI) sector.

Additionally, Quantum Day will take place on Thursday, focusing on quantum computing. QBTS stock surged last week following positive guidance and news from D-Wave Quantum, an emerging player in quantum computing.

Nvidia Stock and AI Sector Outlook

Nvidia stock surged by 8% last week, bouncing back from a six-month low, and is now trading at $121.67. Despite the rebound, shares are still below both their 50-day and 200-day moving averages, and the stock has been largely range-bound since June of last year. Whether Nvidia is ready to enter a new upward trajectory or if it will continue its sideways movement remains uncertain.

Broadcom stock also showed a slight increase of 0.3%, while Taiwan Semiconductor (TSMC), a key supplier for Nvidia and other tech giants, fell by 1.7%, signaling that it may still be searching for a stable bottom.

With Nvidia’s GTC event on the horizon, stocks in the AI chip sector and related companies, including Vertiv and Vistra, are expected to experience significant volatility, depending on the news and developments coming out of the event.

Conclusion

As the market continues to wrestle with uncertainty and global trade concerns, investors remain cautious, particularly regarding the broader tech sector and AI stocks. With key events like Nvidia’s GTC on the horizon, it will be important for investors to monitor developments closely. Despite ongoing challenges, sectors such as Chinese stocks, precious metals, and semiconductors remain areas of focus for investors seeking stability in volatile conditions.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.