Dow Jones: Tech Weakness Drives 400-Point Drop Led by Microsoft, Apple, Nvidia

Dow Sinks 400 Points as Tech Selloff Drags Markets Lower

The Dow Jones Industrial Average is down 400 points on Friday, pressured by steep declines in technology stocks. Despite the drop, the index remains on pace for modest weekly gains, supported by earlier rallies in energy and defensive sectors.

At 16:00 GMT, the Dow Jones Industrial Average is trading 42975.07, down 350.73 or -0.81%.

Microsoft, Apple, and Nvidia Lead Dow’s Decline

Technology giants within the Dow are leading the selloff. Microsoft is falling 2.03% to $429.20, erasing much of its recent gains. Apple is down 1.55%, trading at $255, while Nvidia tumbles 2.82% to $135.98. The pullback in these key names is driving significant weakness in the broader index.

Cisco is also slipping, down 0.63% to $59.60. The tech-heavy segment of the Dow is under consistent selling pressure as traders rotate away from high-valuation stocks.

Energy and Industrial Stocks Cushion Dow’s Losses

Energy and industrial components are offering some stability. Chevron is gaining 0.76% to $145.07, benefiting from stronger oil prices. Boeing is up 0.26% at $180.85 as investors show interest in defensive industrials.

However, Caterpillar is losing 0.82%, trading at $364.10, reflecting broader softness in cyclical sectors despite positive moves in energy.

Consumer and Healthcare Stocks Show Resilience

Defensive sectors are limiting the Dow’s overall decline. Johnson & Johnson is rising 0.43% to $146.21, while Coca-Cola adds 0.34% to $62.79. McDonald’s is climbing 0.24% to $295.50, continuing its upward trend as investors seek stability in consumer staples.

On the downside, Walmart is falling 1.33% to $91.56, reflecting mixed performance across the consumer sector. Procter & Gamble is largely unchanged at $170.05.

Dow Eyes Weekly Gain Despite Friday Pullback

While the Dow is seeing pressure today, it remains up 0.7% for the week. The potential for a “Santa Claus rally” – a seasonal trend of market strength in late December – is keeping investor sentiment cautiously optimistic.

Bond markets are flashing caution signs, with the 10-year Treasury yield holding at 4.593%. Continuing jobless claims have risen to their highest level since 2021, hinting at potential labor market softness. However, initial claims dipped slightly below expectations.

Short-Term Outlook Points to Continued Pressure

The near-term outlook for the Dow appears slightly bearish as tech stocks continue to drag on performance. The index is tracking a 3.5% loss for December, positioning it for its worst monthly performance since April.

Unless energy and defensive stocks accelerate their gains, the Dow may face further downward pressure heading into the new year. Traders should monitor tech performance closely while remaining aware of potential late-year seasonal strength.

More Information in our Economic Calendar.