2026.3.19 US Market Close | Profit-taking in tech stocks ahead of FOMC decision

On March 19, the New York stock market closed lower across all three major indices, pressured by caution ahead of the FOMC meeting and a wave of profit-taking centered on technology stocks. Despite the unveiling of Nvidia's next-generation AI chip at its GTC conference, investor sentiment weakened as expectations for interest rate cuts receded. - Dow Jones: Dropped 1.63%, hitting a four-month low amid FOMC jitters. - S&P 500: Fell 1.36% as profit-taking pressure mounted on tech stocks. - Nasdaq: Declined 1.45%, with tech stocks weakening under the weight of a higher interest rate environment. Key Issues - Heightened FOMC Caution: The market grew concerned that the Fed's dot plot might be revised from three rate cuts to two, leading investors to reduce exposure to risk assets. The 10-year Treasury yield climbed to the 4.2% range following a rise in the February Producer Price Index. - Nvidia GTC and 'Sell the News' Event: Despite the positive news of the 'Blackwell' next-gen AI chip reveal, the stock fell as investors took profits, believing the high expectations were already priced in. - Higher Rate Fears and Tech Correction: The pressure from rising interest rates disproportionately affects growth-oriented tech stocks, triggering a broad decline in AI and semiconductor-related names, including Nvidia. - Starbucks' Cost Structure Concerns: Worries over structural cost increases came to the forefront as Starbucks' North American operating margin plunged to 11.9% from 16.7% year-over-year, driven by rising labor costs. Key Stocks - Nvidia (NVDA): Down over 1% on profit-taking following the GTC conference. - Super Micro Computer (SMCI): Plunged nearly 9% amid a broader sell-off in AI-related stocks, triggered by Nvidia's decline. - Starbucks (SBUX): Fell more than 3.6% due to the sharp drop in its North American operating margin and concerns over its cost structure.