The stock market experienced a major setback with Nvidia losing a jaw-dropping $279 billion in market value in a single day. This marks the fifth time the stock has experienced such a massive loss in market capitalization. With the stock plummeting by 9.5% on that fateful day, it is now down by 23.3% since June 20, despite showing an impressive 118% increase in 2024. The news comes in the wake of reports of the Department of Justice investigating antitrust concerns for Nvidia, causing further unease among investors.
Following Nvidia’s crash, the popular VanEck Semiconductor ETF (SMH) saw a significant drop of 7.5% on the same day. This marks a 20.5% decline since July 11. Similarly, the iShares Semiconductor ETF (SOXX) was down by 7.6%, now down by 20% since July 11. Other semiconductor companies like Micron Technology, Advanced Micro Devices, and KLA also saw declines in their stock prices, adding to the overall negative sentiment in the sector.
Despite the overall market downturn, the S&P Utilities Sector managed to hold up, finishing the day flat after hitting a new 52-week high. Boasting a 3% dividend yield, the sector has been attracting investors, especially in times of economic uncertainty. However, with the Relative Strength Index at 71, some traders are cautious of a potential overbought situation. NRG Energy emerges as the top performer in the sector in the last month, with notable gains.
The SPDR S&P Homebuilders ETF (XHB) experienced a 3.4% drop, reflecting concerns in the real estate market. On the other hand, the S&P Energy sector faced a 2.4% decline, with companies like APA, EOG Resources, and Halliburton being among the biggest drags. This sector remains volatile, with only a few companies showing positive movement in the past month.
As the football season kicks off, attention turns to the gambling stocks, with companies like DraftKings and MGM Resorts seeing significant declines in their stock prices since earlier in the year. The anticipation of the first game of the season between the Kansas City Chiefs and the Baltimore Ravens adds another dimension to the market as investors wait to see how these events will impact these companies.
Dollar General and Dollar Tree, two major retail players, faced challenges with their stock prices after recent reports. Dollar General shares tanked following disappointing results, leading to a 33% drop in just one week. Similarly, Dollar Tree is experiencing a significant decline from its March high, showcasing the volatility in the retail sector.
The night stock market witnessed a series of events that shook investor confidence, from major tech companies facing antitrust scrutiny to fluctuations in key sectors like semiconductors and utilities. The upcoming football season and retail performance add to the complexity of the market landscape, leaving investors with much to consider in their decision-making processes.