Ahead of Tuesday’s market open, Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, showed modest increases after Monday’s significant sell-off.
Nvidia (NVDA), however, saw a sharp decline, plunging nearly 9%. This drop led the stock to a new low, falling below its February 3 low and reaching its lowest level since September 18. Nvidia shares closed significantly lower than their 50-day and 200-day moving averages, after briefly testing these levels last week. In after-hours trading, Nvidia stock rose by 0.5%.
Meanwhile, Tesla (TSLA) also faced a setback, falling nearly 3%, wiping out most of the gains from Friday. Tesla’s stock closed near its 200-day moving average, which serves as its last-ditch support level. In evening trading, the stock edged lower.
Trump’s Tariffs and Key Economic Reports
President Donald Trump’s tariffs on Canada and Mexico are set to take effect on Tuesday. In a statement at the White House on Monday, Trump emphasized there was “no room left” for negotiations with these countries. “They’re all set. They go into effect tomorrow,” he said.
Additionally, the White House confirmed Trump signed an executive order increasing the tariff on Chinese goods to 20%.
Later this week, the U.S. jobs report for February, due on Friday, will be a major focus for the market, along with the ADP employment report and Fed Beige Book on Wednesday.
Earnings season is winding down, but several key retail companies are set to report results this week. These include Costco Wholesale (COST), AutoZone (AZO), as well as CrowdStrike (CRWD), Flutter (FLUT), and Broadcom (AVGO), a leader in the chip sector.
Market Overview: Oil Prices and Treasury Yields
On Monday, the Dow Jones Industrial Average sold off by 1.5%, or 649 points, while the S&P 500 dropped by 1.8%, and the Nasdaq fell by 2.6%.
Ahead of Tuesday’s opening, Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were showing modest gains against fair value. It’s important to note that overnight futures action doesn’t always reflect the actual trading conditions of the market during regular hours.
On Monday, the 10-year U.S. Treasury yield decreased slightly to 4.18%. Oil prices also dropped, with West Texas Intermediate futures settling around $68.30 per barrel.
What to Do After the Stock Market Sell-Off
Following Monday’s significant stock market losses, now is a crucial time to review your investment exposure. The IBD Big Picture column provides valuable updates on market conditions, helping investors adjust their strategies accordingly.
On Monday’s IBD Live show, experts discussed current trading conditions. Given the weak performance of top growth stocks and the high level of distribution days, investors are advised to reduce exposure, particularly by selling stocks that have triggered sell signals.
Recent declines among market leaders, which have resulted in significant losses and broken key support levels like the 10-week moving average, highlight the importance of risk management.
For daily breakouts, IBD MarketSurge’s “Breaking Out Today” list provides insights into stocks that are surpassing buy points. The MarketSurge “Near Pivot” list shows stocks that are approaching buy points in their bases.
To explore more stock ideas, consider checking IBD Stock Lists like the IBD 50, Big Cap 20, and Stocks Near A Buy Zone. These lists highlight bullish patterns and potential buy points, available for daily review.
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