nvidia (NVDA) stock The slide continued on Tuesday After shares fell more than 10% from November’s record close. The chip giant’s stock fell nearly 3% in early trading before bouncing off its session low.
The move echoed declines in all three major indexes, which have taken a breather as investors debate what could happen to the U.S. economy in 2025.
“The rally, which has been really dramatic since July, is looking a little weak,” said James Demmert, chief investment officer at Main Street Research. Yahoo Finance’s Morning Brief.
“So going into 2025, I think investors should prepare themselves emotionally for a general correction of 8% to 12% in the markets,” he warned.
Demmert, who said the Federal Reserve is “probably already at a neutral rate” and likely won’t need to cut interest rates further from here, also saw the new year after a sharp rise in mega-cap big tech. touched the breadth of the market in Stock.
According to a recent Bank of America fund manager survey, 57% of investors surveyed “consider the Long Magnificent 7 to be the most crowded trade.”
“It’s been such a Mag 7 market,” Demmert said. “In 2025, we think those stocks do well, but other things will do as well or better” at more attractive valuations and AI-driven use cases, which are expected to boost earnings.
