The Nasdaq composite took a significant hit in the stock market today, falling around 1.9%, weighed down by broad-based weakness in semiconductor stocks and a sharp rise in the 10-year Treasury yield. The sell-off in chip stocks was led by an earnings disappointment from Applied Materials, which plunged more than 10%, dragging down the VanEck Semiconductor ETF by nearly 7%. The broader market also felt the pressure, with the S&P 500 giving back 1% as it tested a key short-term support level.

Nasdaq Tumbles Amid Semiconductor Slump and Rising Yields

Semiconductor Stocks Plunge on Applied Materials Earnings Miss

The semiconductor sector was the primary driver of the Nasdaq's decline, with the VanEck Semiconductor ETF (SMH) losing nearly 7% as it lost support at its 50-day moving average. This sell-off was largely attributed to the poor performance of Applied Materials (AMAT), which slumped more than 10% after reporting disappointing earnings. Other notable decliners in the chip space included Arm (ARM), down over 5%, and Nvidia (NVDA), which fell 2% but managed to hold just above its 21-day exponential moving average. Nvidia is set to report earnings next week, and investors will be closely watching the results.

Treasury Yields Surge, Putting Pressure on Growth Stocks

The sharp rise in the 10-year Treasury yield, which hit an intraday high of just over 4.5% before backing off slightly, also weighed on the market. The yield ultimately rallied four basis points to around 4.46%, reflecting the ongoing concerns about the Federal Reserve's monetary policy and the potential for further interest rate hikes. This increase in yields put particular pressure on growth stocks, with the MarketSurge Growth 250 index seeing notable declines, including a sharp drop for United Therapeutics (UTHR) as it tested its 50-day moving average.

Broader Market Feels the Pressure

The sell-off was not limited to the Nasdaq, as the broader market also felt the impact. The S&P 500 gave back 1% as it tested its 21-day exponential moving average, a key short-term support level. Small-cap stocks, as represented by the Russell 2000, also declined 1.2%. However, the Dow Jones Industrial Average held up relatively well, losing just 0.5%, with some blue-chip stocks like Walt Disney (DIS) and JPMorgan Chase (JPM) posting gains.

Economic Data Paints a Mixed Picture

The market's performance was also influenced by the release of economic data. October retail sales came in mixed, but September data was revised sharply higher. Additionally, the November Empire State Manufacturing index came in much stronger than expected at 31.2, indicating robust manufacturing activity in the Northeast region, a significant improvement from the previous month's contraction.

Cryptocurrency Exchange Coinbase Rebounds

Amidst the broader market weakness, one notable gainer was Coinbase (COIN), the cryptocurrency exchange operator, which snapped back after three straight declines, rallying more than 3% as bitcoin rose over 2% to around $89,700.

Buffett's Moves in the Market

In other news, Warren Buffett's Berkshire Hathaway made some notable moves in the third quarter, including starting new positions in Domino's Pizza (DPZ) and Pool (POOL), while reducing stakes in Ulta Beauty (ULTA), Capital One (COF), and Charter Communications (CHTR). Buffett's Domino's stake was worth around $550 million at the end of September, while his Pool position was smaller, at around $150 million.

Vaccine Makers Underperform Again

The healthcare sector also saw some weakness, with vaccine makers like Moderna (MRNA) and Novavax (NVAX) plunging more than 5% on Thursday after President-elect Donald Trump nominated Robert F. Kennedy Jr. to lead the Department of Health and Human Services. Other vaccine manufacturers, such as Pfizer (PFE), GSK (GSK), and AstraZeneca (AZN), also lagged in the market.

Alibaba Earnings Miss Expectations

In the tech sector, Alibaba (BABA) reported earnings that topped expectations but missed on revenue, causing the stock to pare premarket gains and reverse sharply lower. The China-based e-commerce giant cited "robust growth" in gross merchandise volume for its Taobao and Tmall Group businesses during Singles' Day, a popular shopping holiday, but the overall results marked the second straight quarter of accelerating top-line growth.