The rollercoaster ride of the stock market continued on Friday, with the S&P 500 falling for the sixth day in a row. The main culprit behind this decline was the tech sector, with mega-cap stocks like Nvidia and Super Micro Computer taking a significant hit.
Super Micro Computer saw its shares crash by 23% after announcing earnings without preannouncing results. This unexpected move caught many on Wall Street off guard, dragging down Nvidia by as much as 10% in the process. The ramifications of this were huge, with Nvidia losing a staggering $183 billion in market valuation.
Aside from these two tech giants, other companies in the sector also saw declines. Meta Platforms, Amazon, and Netflix all experienced losses, with Netflix falling by 9% despite smashing earnings expectations. The company announced that it would stop reporting net subscriber growth starting in 2025, which seemed to dampen investors' enthusiasm.
Despite the rough week for the stock market, there were still some bright spots in other areas. In commodities, bonds, and crypto, there were some modest gains. Crude oil prices edged higher, with West Texas Intermediate and Brent crude both seeing small increases. Gold also climbed, as did Bitcoin, which edged up by 1.21%.
Overall, it was a tumultuous day on the markets, with investors trying to make sense of the various developments. With earnings season in full swing, there are likely to be more ups and downs in the coming days. As always, it's important for investors to stay informed and tread carefully in these unpredictable times.