On Monday, the Nasdaq Composite fell by over 190 points, while the Dow Jones Industrial Average leaped ahead by 260 points. Nvidia’s continued decline for the third session in a row had a negative impact on the S&P 500. In this episode of Market Domination Overtime, hosts Julie Hyman and Josh Lipton spoke with Invesco Global Market Strategist Brian Levitt about how the market can keep rallying despite Nvidia’s downturn. Additionally, Arm Holdings was added to the Nasdaq 100 on Monday, with shares up nearly 140% since its public debut in September 2023. Arm CEO Rene Haas discussed this milestone and the company’s outlook.
The market saw a divergence with the Dow outperforming due to its lower weight in tech, while the S&P 500 and Nasdaq saw declines, particularly in the chip space. Nvidia’s slide was a significant factor, impacting tech growth names. Despite this, there were sectors like energy, utilities, and staples that performed well. The economic perspective focused on the Federal Reserve’s potential actions, the risk of recession, and the upcoming presidential election.
Brian Levitt shared his views on the market, emphasizing that a broadening rally would be beneficial, even with a cooling off of top-performing names like Nvidia. He remained optimistic about the economy, advising that the Federal Reserve needs to start its easing cycle to support economic growth. Regarding the presidential election, he emphasized that it may not have a significant impact on the markets.
Arm Holdings CEO Rene Haas highlighted the company’s inclusion in the Nasdaq 100 and its focus on AI, which he believes will be transformative in various industries. He acknowledged the fast pace at which AI technology is evolving and its potential impact on consumer devices. Renee also discussed the importance of hardware capability in supporting AI applications, especially in smartphones.
Overall, the market saw fluctuations driven by tech stocks like Nvidia, while other sectors showed resilience. The focus remains on economic indicators, the Federal Reserve’s actions, and the potential impact of AI on various industries. The inclusion of Arm Holdings in the Nasdaq 100 reflects its growth potential and leadership in the semiconductor industry. Market participants are closely monitoring developments in AI technology and its implications for consumer devices and enterprise applications.
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https://finance.yahoo.com/video/nvidia-down-third-day-arm-224913365.html