2024-02-20 17:17:15
The tech-heavy Nasdaq led losses on Wall Street on Tuesday, as chipmaker Nvidia fell sharply ahead of its highly anticipated earnings release, while Walmart’s upbeat forecasts limited losses on the Dow Jones. Shares of chip designer NVDA.O fell nearly 6%, while the broader Philadelphia semiconductor index .SOX lost 2.5%, with other chip stocks also following. Investors are wondering whether Nvidia’s quarterly results, due following markets close Wednesday, will justify its high valuation and add to the frenzy around artificial intelligence (AI) or whether they will dampen intelligence optimism artificial. Bets on AI helped Nvidia become the third most valuable U.S. company and recently replaced Tesla TSLA.O as the most traded stock on Wall Street. Tesla shares fell 3.9%. “The selloff we are seeing today is due to the reversal of SMCI (Super Micro Computer) because a lot of hot money was chasing these AI names and then we had Friday’s vicious selloff,” he said. said Dennis Dick, a trader at Triple D Trading. Shares of Super Micro Computer SMCI.O extended losses 11.3%, following finishing 20% lower on Friday, as investors backed away from betting on the stock as a big beneficiary of strong computer demand. artificial intelligence technology. Walmart WMT.N hit a record high and was up 3.4% following the US retail giant forecast fiscal 2025 sales well above Wall Street expectations and raised its annual dividend by 9 %. This helped mitigate the impact on the Dow Jones .DJI. The S&P 500’s consumer staples sector .SPLRCS , which includes Walmart, rose 1.1%, while the information technology sector .SPLRCT fell 1.8%. A multi-week rally on Wall Street was interrupted by higher-than-expected U.S. inflation data last week, dampening market expectations of an imminent start to the Federal Reserve’s easing cycle. The rate cut is expected in June, according to a narrow majority of economists polled by Reuters, who also highlighted the risk of a further postponement of the first cut. Investors are awaiting the release of the minutes of the Fed’s latest monetary policy meeting as well as remarks from several central bank officials later in the week. At 11:40 a.m. ET, the Dow Jones Industrial Average .DJI was down 49.57 points, or 0.13%, at 38,578.42, the S&P 500 .SPX was down 32.50 points, or 0.65%, to 4,973.07, and the Nasdaq Composite .IXIC was down 195.28 points, or 1.24%, to 15,580.37. Smart TV maker Vizio VZIO.N jumped 14.9% following Walmart said it would buy the company for $2.3 billion. Discover Financial Services DFS.N jumped 14.4% following Warren Buffett-backed consumer bank Capital One announced plans to acquire the US credit card issuer for $35.3 billion of dollars. Intel INTC.O rose 0.6% following a report Friday that the Biden administration is in talks to provide more than $10 billion in subsidies to the semiconductor company. Declining stocks outnumbered rising stocks by a ratio of 1.31 to 1 on the NYSE and 1.63 to 1 on the Nasdaq. The S&P recorded 27 new 52-week highs and three new lows, while the Nasdaq recorded 53 new highs and 65 new lows.
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