Live Updates: Nasdaq Composite Drops as NVIDIA (NVDA) Rally Fades

The sell-off in stocks has moderated, with the Dow Jones now slightly positive, the S&P 500 down .35%, and the Nasdaq down .95% as of 11:30 p.m. ET.

What’s causing the sudden sell-off? Treasury rates continue to rise, which appears to be the primary catalyst in stocks with recent momentum selling off. Two key storylines to watch this year will be how much corporate earnings rebound and what happens with interest rates.

Right now, expectations are trending toward just a single rate cut this year. The continuing drop in expectations around interest rate cuts is reflected in the continuing rise in Treasury yields.

After rising strongly in premarket trading, NVIDIA shares are down 3% as of 10:22 a.m. ET.

In general, momentum stocks are falling today. The Nasdaq Composite is now down .70% while the Information Technology sector is off 1.04%.

Other stocks that have seen big gains across the past year like Palantir and Applovin are also down today. Palantir is down 5.5% while Applovin has fallen 9%.

Let’s take a look at some of the biggest market movers today.

• Micron (Nasdaq: MU): Is up 7% after NVIDIA revealed they’ll be using Micron’s memory for their new RTX lineup of graphics cards. While RTX doesn’t provide the revenue of other product lines where NVIDIA has a close relationship with memory maker SK Hynix, there have been reports that Micron is struggling with yields on cutting-edge memory chips so the stamp of approval from NVIDIA is enough to push shares higher.
• Moderna (Nasdaq: MRNA): Jumped as fears continue to grow around a bird flu pandemic. Moderna is developing a vaccine for the bird flu, so if cases continue growing it’s a likely stock ‘winner’ from a bad situation.

After jumping nearly 3% in premarket trading, NVIDIA lost its gains shortly after the bell.

The company is currently trading almost exactly flat while other AI stocks like Broadcom (Nasdaq: AVGO) and Marvell (Nasdaq: MRVL) also fell shortly after the opening bell.

It appears AI stocks may finally take a breather after a furious rally in the first three days of 2025.

Here are some of the more notable upgrades and downgrades from Wall Street today:

• Ulta Beauty (Nasdaq: ULTA): Has a series of upgrades and downgrades as the company announces a new CEO. B. Riley upgraded the stock to Neutral from Sell, Canaccord raised their price target to $538 from $500, Citi raised its price target to $457 from $450 while maintaining a Neutral rating, and Stifel raised its price target to $475 from $455 while maintaining a Hold rating. Ulta shares are up 3.65% in premarket trading.
• Axon (Nasdaq: AXON): Say its price target raised to $645 from $615 by Raymond James. Shares aren’t moving much premarket after Axon fell 5% in yesterday’s trading.