The stock market experienced a tumultuous day as major averages stumbled, signaling the start of September on a losing note. Nvidia bore the brunt of the bearish sentiment, shedding $279 billion in market value on Tuesday. This marked the fifth instance of the stock losing over $200 billion in a single day, with a 9.5% decline. Despite a 23.3% drop since June 20, Nvidia has managed to stay up 118% in 2024. The stock’s after-hours trading saw an additional 2% dip following reports of antitrust scrutiny by the Department of Justice.
The VanEck Semiconductor ETF (SMH) and iShares Semiconductor ETF (SOXX) took a hit, plummeting 7.5% and 7.6% respectively on Tuesday. Nvidia emerged as the weakest link while Micron Technology and Advanced Micro Devices also suffered losses in the last five trading sessions. On the brighter side, KLA managed to hold up with an 8.8% decline.
Contrary to the broader market trend, the S&P Utilities Sector remained relatively stable on Tuesday despite nearing a 52-week high earlier in the session. With a 3% dividend yield, the sector attracts investors seeking higher returns amid declining interest rates. NRG Energy, PG&E, and Constellation Energy emerged as top performers in the sector over the last month. However, American Water Works and AES lagged behind, experiencing negative returns.
Mortgage applications saw a slight increase last week while the average 30-year rate hovered around 6.5%. The SPDR S&P Homebuilders ETF (XHB) declined by 3.4% on Tuesday, remaining 6.5% below the July 31 52-week high. Champion Homes, Builders FirstSource, and Floor & Decor emerged as top performers in the real estate sector over the last month. On the flip side, TopBuild witnessed a significant dip, along with other industry players like Installed Building Products and Williams-Sonoma.
The S&P Energy sector faced downward pressure, shedding 2.4% on Tuesday and dropping 9.4% from the April high. APA, EOG Resources, and Halliburton contributed to the sector’s decline, while certain players like Oneok and Targa managed to post gains in the last month. Notably, APA, Halliburton, and SLB were the laggards, all experiencing roughly 6% losses in the same period.
With the football season kickoff just around the corner, gambling stocks have been in focus. Companies like DraftKings, Flutter, MGM Resorts, and Caesars Entertainment have witnessed significant declines since key high points. As excitement builds up for the impending games, CNBC will unveil a highly anticipated list of NFL team valuations on Thursday’s “Squawk Box.”
In the ever-changing landscape of the stock market, investors are cautioned to keep a close eye on market developments and trends to make informed decisions. Market volatility presents opportunities for gains and losses, requiring a strategic approach to navigate through the ups and downs of the financial world. Stay tuned for more updates on CNBC as the markets continue to unfold their stories.
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