Wall Street experienced a mixed close to the week, with Nvidia’s stock cooling down, marking its first losing week after eight consecutive weeks of gains. The S&P 500 edged down slightly by 0.2%, while the Dow Jones Industrial Average posted a marginal rise, less than 0.1%. The Nasdaq composite dropped 0.2%, reflecting a cautious stance among investors. Nvidia’s shares fell 3.2%, contributing to the tech sector’s overall downturn. Despite the decline, Nvidia’s stock has risen 155% so far this year, briefly surpassing Microsoft as the most valuable company earlier in the week before experiencing profit-taking that led to its recent drop. Economic data released throughout the week presented a mixed picture. Business activity in the US showed stronger than expected performance with no significant inflationary pressures, a positive sign for the Federal Reserve’s efforts to slow the economy without triggering a recession. However, existing home sales remained at their lowest level in three decades, not showing much movement in May as prices hit a new record and mortgage rates stayed high. The National Association of Realtors reported a 0.7% decline from April and a 2.8% drop from May last year. The PMI composite index for June reached 54.6, beating expectations and indicating continued economic expansion. Yet, the Conference Board’s Leading Economic Index for May fell by 0.5%, suggesting a slowdown in growth. As the quarter came to a close, investors weighed these mixed signals against the backdrop of a strong performance in the stock market, particularly by large-cap tech stocks like Nvidia, which have reached historical highs.
Key points
- Nvidia’s stock fell 3.
- Mixed economic data with strong business activity and low existing home sales influenced market sentiment.
- The S&P 500 and Nasdaq saw slight declines, while the Dow Jones posted a marginal gain.
- Profit-taking observed in tech giants like Nvidia after recent price surges.
2%, marking its first losing week in nine despite a strong annual performance.
