Nvidia Bounces Back, Boosts S&P 500 and Nasdaq following Sell-off

Spread the love



Investors saw a positive turn in the market as the S&P 500 and the Nasdaq Composite rebounded from a three-day decline driven by NVIDIA’s recovery after a sell-off. However, the Dow Jones Industrial Average still faced a nearly 300 point drop due to losses in Boeing, Goldman Sachs, and Housie deposit. The bond yield remained steady ahead of key inflation data expected on Friday. Oil prices in the U.S. fell slightly as attention shifted to Middle East tensions and summer gasoline demand.

In other news, Volkswagen announced plans to invest up to $5 billion in electric vehicle startup Rivian, boosting its shares by 40% in after-hours trading. Sixteen Nobel Prize-winning economists warned of potential economic risks if former President Donald Trump were to be reelected, citing concerns about inflation. Federal Reserve Governor Michelle Bowman hinted at potential interest rate hikes if inflation persists. The European Union accused Microsoft of antitrust violations, particularly related to its Teams and Office products, regardless of recent changes made by the tech giant.

Meanwhile, in the aerospace industry, Boeing faced challenges with its Starliner spacecraft due to helium leaks and propellant failures, while Airbus encountered supply chain issues leading to a drop in its shares. Despite these setbacks, Nvidia shares recovered after experiencing a significant decline that wiped out billions in market capitalization. Hedge funds have been rotating away from tech stocks, impacting the Nasdaq but supporting the Dow.

Looking ahead, market analysts anticipate a potential pullback, with Piper Sandler’s Craig W. Johnson predicting a possible consolidation in the market. The broader market is seen as overdue for a correction, with indicators needing improvement to support sustainable sector rotations. The coming weeks will provide more clarity on whether current trends continue or lead to a broader market pullback.

Article Source
https://www.cnbc.com/2024/06/26/cnbc-daily-open-nvidia-rallies-after-sell-off-lifts-sp-500-and-nasdaq-.html