Nasdaq stages recovery from recent selloff led by Nvidia, Tesla; pressure continues on S&P500, Dow Jones

Wall Street indices recovered after the recent selloff

US stocks staged a partial recovery after the recent market rout, with the benchmark Nasdaq Composite inching higher led by gains in AI giant Nvidia and Tesla in early trade on March 13. Both Tesla and Nvidia took a heavy beating in the previous session, ending with sharp cuts, which gave way for buying from lower levels ahead of President Donald Trump scheduled meet with top business executives.

The Nasdaq rose 0.4 percent, while the Dow fell 287 points, 0.7 percent, and the S&P 500 dipped 0.2 percent.

Stocks tumbled on Monday, exacerbating losses, with the tech-heavy Nasdaq logging its biggest percentage drop since September 2022, following last week’s 10 percent correction. The selloff wiped out $4 trillion from the S&P 500’s peak just last month while the Dow closed below its 200-day moving average for the first time since November 1 last year.

Investors sentiment has taken a hit in recent times amid mounting concerns of a probable economic downturn in the US after President Donald Trump did not rule out a recession due to his tariff plans.

The biggest concerns weighing down on investor sentiment is that tariffs imposed by the Trump administration could push prices higher in the US, pushing the Federal Reserve to hold on higher rates for longer, further damaging economic growth. Adding fuel to the fire, Trump referred to these recession fears, as "a period of transition," in the US' economic condition.

Disappointing forecasts from Kohl's and Delta added to concerns about a slowing economy, further weighing on investor sentiment.

Adding to market caution, key macroeconomic data is set for release this week. The University of Michigan's consumer sentiment reading arrives on Friday. Inflation data will also be in focus, with the February consumer price index scheduled for Wednesday and the producer price index on Thursday.

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