Chip Stocks Slide Nears $5 Trillion as Nvidia Hits Lows

Chip stocks faced heavy selling pressure on Tuesday, bringing their total market value loss to approximately $5 trillion since October 6, according to YahooStocks0. The slide follows a hotter-than-expected October Consumer Price Index report that triggered broader market declines and raised trader bets on a December rate hike.

Nvidia (NVDA) dropped about 6%, falling below the $170 level and putting the stock on track for its lowest close since March 30. The company's relative strength index sank to 23, marking its most oversold reading since June 2019. Memory makers Micron (MU) and SanDisk (SNDK) alongside chip designer Arm (ARM) fell between 3% and 5% during midday trading.

Market Impact and Yields

The S&P 500 fell nearly 1% midday, shedding about $500 billion in market value. Meanwhile, the equal-weighted S&P 500 dropped only about 0.2%. Fixed income markets also felt the pressure, with the 5-year Treasury yield heading toward its largest one-day jump since April 2025 and the 10-year Treasury yield climbing back above 5%.

Key facts

• Chip stocks have lost about $5 trillion since Oct. 6, representing roughly a quarter of their total value.
• Nvidia shares fell about 6% on Tuesday, hitting an RSI of 23, the most oversold level since June 2019.
• The S&P 500 shed about $500 billion in market value amid a nearly 1% drop midday.
• The hotter-than-expected October Consumer Price Index triggered the broader market sell-off.