The stock market started March with a fresh wave of volatility, as initial optimism quickly faded into losses. Following a lackluster February, investors hoped for a rebound, but early gains were erased, with all three major indices turning red.
Nvidia’s Slide Weighs on Markets
The biggest drag on the markets today is Nvidia (Nasdaq: NVDA), which is experiencing a sharp 5% decline. As one of the primary drivers of the recent AI boom, Nvidia’s stock has been highly sensitive to market sentiment and industry shifts. Today’s downturn has weighed on the broader market, with the Nasdaq Composite leading the losses.
- Dow Jones Industrial Average: Down 11.43 points (-0.03%)
- Nasdaq Composite: Down 120.47 points (-0.62%)
- S&P 500: Down 19.33 points (-0.32%)
Despite Nvidia’s setback, some stocks are breaking the trend and trading firmly in positive territory.
Tesla Reclaims $300 Amid Bullish Outlook, But Faces New Risks
Tesla (Nasdaq: TSLA) is among the standout performers today, gaining nearly 3% and surpassing the $300 per share mark. The electric vehicle giant received a major vote of confidence from Morgan Stanley, which named it a “top pick” among auto stocks and assigned a bullish $430 price target—implying a 43% upside. The surge in Tesla’s stock has also propelled CEO Elon Musk’s net worth to approximately $351 billion, reinforcing his position as one of the world’s wealthiest individuals.
Tesla shares rose another 2% on Monday after Morgan Stanley reaffirmed its stance, emphasizing the company’s artificial intelligence and robotics initiatives as key drivers of future growth. Analyst Adam Jonas, a longtime Tesla bull, pointed out that while Tesla’s traditional car business faces headwinds from high U.S. borrowing costs and increasing competition from Chinese automakers like BYD, its AI-powered advancements could set it apart in the long run.
However, Tesla is also facing growing concerns beyond its financials. The company’s latest investor report lists various risks, from lawsuits to battery fires and global conflicts, yet makes little mention of Elon Musk’s increasing involvement in right-wing politics. Marketing experts warn that Musk’s outspoken political views could be alienating potential customers.
Tesla’s sales plunged 45% in Europe in January, according to Jato Dynamics, even as overall EV sales in the region increased. Reports also indicate falling sales in California, Tesla’s largest U.S. market, along with the company’s first annual global sales decline last year. Some customers are even reconsidering their purchases, with Model 3 owner John Parnell from California canceling his Cybertruck order, saying, “He’s destroying the brand with his politics.”
Palantir Surges on Government Contract Momentum
Palantir Technologies (Nasdaq: PLTR) is another big gainer today, climbing over 5% to approach $90 per share. Analysts have set an optimistic tone for the data analytics company, citing strong government contract momentum despite concerns over defense budget cuts. Palantir’s strategic role in AI-driven intelligence solutions continues to attract investor interest, fueling its stock’s recent rally.
Meta Platforms Expands AI Ambitions
Meta Platforms (Nasdaq: META) is extending its recent rally as news emerges about its upcoming AI-powered app. The tech giant is reportedly preparing to launch a standalone artificial intelligence application to compete directly with OpenAI’s ChatGPT and Google’s Gemini in 2025. The move signals Meta’s deeper commitment to the AI space, further positioning itself as a key player in the rapidly evolving sector.
As investors navigate through today’s market swings, the divergence between tech giants highlights the ongoing battle for dominance in AI, EVs, and enterprise analytics. With market sentiment shifting rapidly, all eyes remain on the Federal Reserve, macroeconomic data, and corporate earnings to gauge the next big move.
