Major stock indices closed lower today, with the NASDAQ suffering its worst trading day since January 27, down 3.97% year-to-date.

The Dow industrial average closed at 43,239.50, down 193.62 points or 0.45%. The S&P index fell 94.49 points or 1.59% to finish at 5,861.57, while the NASDAQ closed at 18,544.42, down 530.84 points or 2.78%. The Russell 2000 also declined by 34.5 points or 1.59%, ending at 2,139.65.

Nvidia shares dropped by 8.48% following its earnings announcement. Other notable declines included Palantir at 5.10%, Meta at 2.29%, Microsoft at 1.80%, and Amazon at 2.62%.

Tesla fell by 3.04% to $281.95, nearing its 200-day moving average of $278.14, which it last tested on August 28. The current stock price is down 42% from its December high of $488.54.

These declines come after a period of strong gains across the broader market. With the NASDAQ now down nearly 4% for the year, the recent downturn suggests a shift in sentiment. Large-cap technology stocks, which have been the driving force behind recent rallies, saw broad-based weakness, with Nvidia at the forefront. The 8.48% drop in its share price followed an earnings report that, while strong on paper, may have failed to meet the market’s lofty expectations.

When a company of this size falls this much in a single session, it tends to have ripple effects. We saw that in the broader tech sector, with declines in Microsoft, Meta, and Amazon. This wasn’t limited to high-growth firms either, as Palantir’s fall suggests investor risk appetite may be decreasing. Even Tesla, which had already been struggling, edged closer to an important technical level. If it breaks below its 200-day moving average, historical patterns suggest further downside could be possible.

The broader index declines show this isn’t just a tech-sector story. The Dow, typically more insulated from volatility in high-growth names, still lost nearly 200 points. The Russell 2000, which tracks smaller companies, fell in line with the S&P 500. This means selling pressure was widespread. Market participants should ask whether this marks the start of a longer downturn or just a short-term pullback.

Economic data and central bank policy will be closely watched. The Federal Reserve’s next decision looms large, and with inflation still a concern, there is little room for dovish surprises. If rate expectations stay elevated, high-valuation stocks could face further pressure. Earnings season is still in full swing, meaning more volatility is likely. For those watching technicals, the NASDAQ’s next support level isn’t far below today’s close. How it behaves in the coming sessions will be telling.