US Stock Market: NASDAQ Opens Higher on NVIDIA and Tesla Rebounds

Delta and American Airlines Lower This Year's Demand Outlook

Amid a lack of significant buying interest following the previous day's sharp decline, the US stock market continued its downward trend on the 11th (local time), though it opened mixed as some tech stocks like NVIDIA and Tesla rebounded.

As of 10 AM Eastern Time, the S&P 500 was down 0.3% from the previous day. The Dow Jones Industrial Average fell 0.7%. In contrast, the NASDAQ, which initially opened lower, turned positive with a 0.2% gain.

The 10-year Treasury yield rose 1 basis point to 4.23%. The Bloomberg Dollar Spot Index fell 0.4%.

The previous day, the NASDAQ plunged 4%, marking its worst day since September 2022. The Dow Jones Industrial Average closed below its 200-day moving average for the first time since November 1, 2023.

Citigroup downgraded its rating on US stocks from 'overweight' to 'neutral,' stating that "American exceptionalism has been temporarily paused."

Tesla, which plummeted 15.4% the previous day, rebounded 5% to trade at $233. NVIDIA is trading at $109, up 2.4%.

Amid concerns about economic slowdown, Delta Air Lines significantly lowered its revenue forecast for the year due to decreased US demand, causing its stock to fall more than 5%. American Airlines also lowered its air travel demand outlook for the year.

Retailers like Kohl's and Dick's Sporting Goods also provided conservative forecasts for the year.

Ulrike Hoffmann-Burchardi, head of global equities at UBS Financial Services, said, "Selling worsened as momentum trading in some markets and long-term positioning in certain sectors like tech stocks unwound." She noted that the previous day's plunge was not a signal of increased risks to the US economy.

Meanwhile, President Trump is scheduled to meet with CEOs of companies that are struggling with economic policy uncertainties today.

Kim Jung-a, Contributing Writer kja@hankyung.com