U.S. Stocks Close Mixed: Tesla Drags Tech Lower, Apple and Nvidia Buck the Trend

U.S. stocks closed mixed on Wednesday, with the three major indexes showing divergent performance. The Nasdaq Composite and the S&P 500 moved in opposite directions, reflecting structural disagreements in the market during tech earnings season. Tesla's disappointing earnings dragged down the lithium battery sector, while heavyweight stocks like Apple and Nvidia rose against the trend, providing support.

Nasdaq vs. S&P 500: Structural Battles in Earnings Season

By the close, the Dow Jones Industrial Average edged up, the S&P 500 slipped slightly, and the Nasdaq Composite recorded a notable decline. Market analysts pointed to intensifying earnings divergence within the tech sector as the primary cause. On one hand, Tesla's weak earnings raised concerns about the profitability outlook for the electric vehicle industry; on the other, tech giants like Apple and Nvidia attracted capital inflows with strong earnings expectations and share buyback plans.

According to FactSet data, earnings growth expectations for the tech sector within the S&P 500 have been revised down for two consecutive quarters, but Apple and Nvidia's earnings guidance remains above the market average. This "ice and fire" situation makes it difficult for the indices to form a consistent direction.

Tesla Leads Decline: Earnings Miss, Lithium Battery Sector Under Pressure

Tesla shares fell sharply on Wednesday, becoming one of the worst-performing tech stocks. The company's latest quarterly earnings report showed revenue and profit below analyst expectations, mainly due to intensified global EV price wars, rising costs from capacity ramp-up, and supply chain pressures. Following the report, several investment banks lowered their price targets for Tesla.

Tesla's weak performance quickly spread to the lithium battery supply chain. Lithium miner Albemarle and battery maker Panasonic saw their shares decline broadly. Markets worry that if Tesla cannot maintain its pricing power in the industry, profit margins across the EV sector could be further compressed. According to BloombergNEF data, global EV sales growth slowed from 35% in 2023 to about 20% in 2024, with the competitive landscape deteriorating.

Apple and Nvidia Buck the Trend: AI and Buybacks as Dual Drivers

In stark contrast to Tesla, Apple and Nvidia shares rose against the trend, becoming key forces stabilizing the tech sector. Apple recently announced an expansion of its stock buyback program and raised its services revenue guidance, boosting investor confidence. According to an official Apple statement, its services business has surpassed 1 billion subscribers, becoming a new growth engine.

Nvidia benefited from the continued explosion in AI computing demand. The company disclosed in its latest earnings report that data center revenue grew over 100% year-over-year, far exceeding market expectations. Nvidia CEO Jensen Huang stated on the earnings call that global enterprises are accelerating AI infrastructure deployment, with Nvidia's GPU orders booked through 2025. This optimistic outlook pushed Nvidia shares to an all-time high and drove gains in other AI chip stocks like AMD and Broadcom.

Market Outlook: Divergence May Persist, Focus on Fed Signals

Analysts believe the current divergence in U.S. stocks may continue into the next earnings season. On one hand, traditional tech giants like Tesla face growth bottlenecks and increased valuation pressure; on the other, leading companies in emerging fields like AI and cloud computing still have strong earnings resilience. Additionally, the Federal Reserve's monetary policy direction remains a key variable affecting overall market risk appetite. According to the latest Fed meeting minutes, officials remain cautious about the inflation outlook, with expectations for rate cuts cooling.

In terms of fund flows, investors are shifting from high-growth stocks to defensive sectors. Utilities and healthcare have recently seen net capital inflows, while net outflows from the tech sector have expanded. This rotation suggests the market is preparing for potential policy uncertainty.

Risk Warning

The above content is for reference only and does not constitute investment advice. The stock market carries risks, and investment should be made cautiously. The companies and industry analyses mentioned in this article are based on public information, and their accuracy or completeness is not guaranteed. Investors should make independent judgments and bear investment risks.