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Key Takeaways
- The S&P 500 declined 1.1% on Tuesday, March 18, as concerns about trade and the economy weighed on sentiment and the tech sector selloff resumed.
- Super Micro Computer’s shares posted the biggest losses in the benchmark indices amid concerns about AI’s near term headwinds.
- Discover stock recovered as analysts expressed confidence in the credit card issuer's planned merger with Capital One, despite regulatory concerns.
Tuesday, the major U.S. stock indexes lost some ground after two sessions of positive performance. As the Federal Reserve began its two-day meeting, concerns about economic growth and trade-related uncertainties persisted. An interest rate announcement is scheduled for Wednesday.
The S&P 500 lost 1.1%, while the Dow slipped 0.6%. The Nasdaq closed 1.7% lower as a result of the increasing pressure on tech stocks.
At a major conference, Nvidia (NVDA), a semiconductor giant, unveiled its latest generation AI chips. Wedbush analysts suggested that Nvidia’s event could provide a reality-check on AI. They said macroeconomic uncertainty might create near-term headwinds, but it would not derail massive investments in the technology. Nvidia shares ended 3.4% lower, while shares of AI server maker Super Micro Computer (SMCI) tumbled 9.6%, losing the most of any S&P 500 stock.
Norwegian Cruise Line Holdings shares fell 4.8% Tuesday, reversing gains made in the previous session after JPMorgan analysts upgraded it. Cruise operators reportedly told the analyst team that they see a stable travel demand. However, rising geopolitical conflicts and economic uncertainty are potential headwinds. Royal Caribbean Cruises’ (RCL) shares suffered even greater losses, falling 7.3%.
RBC Capital lowered its price target for Tesla (TSLA), causing the stock to drop 5.3%. Analysts have raised concerns over Tesla’s self driving technology, as well as the rollout of its robotaxis in China as well as Europe. BYD, a Chinese competitor, unveiled a charger for ultra-fast electric vehicles, with plans to release vehicles with the technology by April.
Shares of credit card issuer Discover Financial Services (DFS) added 3.8%, logging the top daily performance in the S&P 500. The stock recovered its losses from the previous day after reports that Department of Justice officials had antitrust concerns regarding Discover’s merger Capital One Financial (COF). Citi analysts suggested that even if regulators objected to potential concentration in subprime, the two companies can still negotiate a satisfactory agreement. Capitol One shares rose 2.1%.
Mosaic Co. held its 2025 Analyst Day on Tuesday and shares of the agricultural chemicals provider rose 2.5%. The manufacturer highlighted macroeconomic trends which should result in a sustained demand of crop nutrients. These included population growth, the priority of food security and the limited availability of arable lands.
Humana (HUM), the health insurance giant, has seen its shares rise by 2.0% following a partnership it formed with Icon Health. The partnership aims to improve seniors’ access to musculoskeletal treatment. Humana CenterWell and Conviva divisions that are geared towards older patients will launch an initiative in Palm Beach County, Florida. They will integrate musculoskeletal specialist in their primary health care centers.
