Wall Street witnessed a significant shakeup as Nvidia’s stock price plunged by 3.5%, wiping out $118 billion in market capitalization and causing the company to lose its title as the world’s most valuable company to Microsoft. The sharp decline in Nvidia’s shares, which was part of a broader market downturn, saw the S&P 500 index fall by 0.6%. Despite the drop, Nvidia’s stock remains 40% higher than a month ago, buoyed by the AI sector’s growth. The technology sector saw mixed results, with some AI stocks like Broadcom also experiencing declines, while others like Accenture reported strong earnings and new bookings in generative AI. The Dow Jones Industrial Average and Nasdaq retreated as well, with investors showing caution amid the volatility. The global impact of Nvidia’s slump was evident, with Asian markets closing mostly lower and European markets also feeling the pressure. The ‘Witches’ Sabbath’, a day known for heightened volatility due to the expiration of stock options and futures contracts, added to the uncertainty in the market. Investors are now looking ahead to the November election and the next Federal Reserve meeting for indications of the market’s direction, while also considering the potential for interest rate cuts later in the year.
Key points
- Nvidia’s stock plummeted, erasing $118 billion in market cap and impacting global markets.
- Microsoft regained its status as the world’s most valuable company, surpassing Nvidia.
- Global shares and US stock futures declined as tech stocks faced a retreat, with Nvidia leading the downturn.
- The technology sector showed gains despite overall market decline, indicating a mixed market sentiment.
- Investors are cautious amid market volatility and upcoming political and economic events.
Contradictions👾While Nvidia’s stock price fell significantly, causing market downturns, some reports indicate that the technology sector showed gains.
