Today’s S&P 500 Update: AI Stocks Dip as Marvell Technology Reveals Weak Outlook

Stock markets in the U.S. took a hit on March 6, 2025, as investors reacted to ongoing uncertainty about trade policies. The S&P 500 fell by 1.8%, while the Dow Jones dropped 1%. The Nasdaq suffered the most, plummeting 2.6%, mainly due to struggles in the tech sector.

Concerns grew over the Trump administration’s tariff decisions, which have continually kept investors on edge. Although tariffs on some Mexican goods were delayed until April, the market remained anxious. Attention is now shifting toward upcoming job data, with the Bureau of Labor Statistics set to release its February jobs report. Recent signs suggest a slowdown in hiring, raising alarms about the economy’s health.

In the tech sector, AI-related stocks also took a hit. Marvell Technology, a semiconductor company, provided a lukewarm outlook, and investors were hoping for a more optimistic report tied to AI growth. Marvell’s shares plunged almost 20%, causing a ripple effect across the industry.

Palantir Technologies, which thrived on AI excitement last year, saw its shares drop by 10.7%. Part of this decline comes as CEO Alex Karp plans to sell a significant portion of his stock in the company. Similarly, Vistra, a Texas electricity generator heavily invested in AI, saw its shares fall by 9.8%. Constellation Energy, also benefiting from the AI trend, dropped 9.4%.

Netflix’s stock declined by 8.5% after analysts predicted a slowdown in subscriber growth. They pointed out that recent gains in subscriptions were largely due to a crackdown on password sharing. As a result, how quickly Netflix’s subscriber base can grow may slow down.

On a brighter note, MarketAxess Holdings, which runs a digital trading platform for fixed-income securities, saw its shares rise by 5.3%. They reported strong year-over-year growth, driven by activity in emerging markets and Eurobonds, despite some weakness in U.S. credit markets.

Archer-Daniels-Midland, a major player in agribusiness, gained 4.9%. Their recovery came after news that the administration might carve out agricultural products from tariffs, easing previous concerns. Alongside them, Fastenal reported an increase in daily sales growth, boosting their shares by 4.5% as analysts noted strength in their industrial markets.

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