Stocks took a hit as Nvidia Corp. saw a significant drop of almost $400 billion, sparking concerns about the overall market rally in the tech industry. With Nvidia extending its three-day decline to over 10%, investors are wary of a potential correction in the market.
While other sectors saw gains on Monday, tech stocks, particularly chipmakers, faced downward pressure. Industry experts are warning of a possible pause in the US equity market, citing the optimism already priced into stocks. The uncertainty surrounding monetary policy and cooling demand for Bitcoin exchange-traded funds are adding to the market’s nervousness.
Market strategists are advising investors to focus on high-quality large caps and defensive stocks as a hedge against potential volatility. The narrow market performance is not necessarily a negative sign, as historic data shows that it can persist until there is a significant slowdown in economic growth.
Corporate highlights include Trump Media & Technology Group Corp. receiving substantial proceeds, Airbus SE cutting its earnings goal due to supply-chain issues, and Apple Inc. facing potential fines over its App Store rules in the EU. Alnylam Pharmaceuticals Inc. saw a surge in its stock after successful drug trials, while Tencent Holdings Ltd.’s new mobile game showed impressive sales numbers.
Investors are closely watching key events this week, including US consumer confidence data, Fed speeches, and GDP numbers. Market moves show a mixed picture, with the S&P 500 slightly down, the Nasdaq 100 falling, and the Dow Jones Industrial Average gaining.
The overall sentiment in the market is cautious, as investors brace for potential shifts in the tech sector and broader market conditions. As the year progresses, market watchers are looking for signs of sustained growth and stability amidst ongoing challenges and uncertainties.