S&P 500 Is Losing Ground As Tech Stocks Retreat

Tesla Pushes the Limits

As tech companies continue to face significant pressure, the S&P 500 is losing ground in today's trading session. The heavily tech-focused NASDAQ Composite is down 1%.

As bond speculators wager on more aggressiver Fed, Treasury rates are rising. Higher Treasury rates are negative for tech equities that are sensitive to yield.

Concerns about the demand for Tesla's vehicles are what are driving today's decline, as the stock is down 8%. According to recent estimates, used Tesla vehicle prices are rapidly declining, which is bad news for the industry's new car sales.

As traders pay attention to sluggish demand and escalating tensions with China, NVIDIA and other semiconductor companies have also been under intense pressure.

Energy stock prices are rising as WTI oil closed over the $80 mark. From February 1, 2023, Russia will no longer export oil to nations that take part in the price cap system, further supporting the oil market and equities that are tied to the oil industry.

Stocks of basic supplies are also among the best right now. Gold producer Newmont Corporation and copper producer Freeport-McMoRan are driving the recovery in this market category.