Traders work on the floor of the New York Stock Exchange (NYSE) on January 29, 2024 in New York City.
Spencer Platt | Getty Images
Stocks fell on Thursday, with Dow Jones Industrial Average Loss of more than 500 pips, with a post-earnings rally Nvidia Failed to lift the broader market.
The 30-stock Dow Jones index fell 590 points, or 1.5%, putting it on track for its biggest single-day loss since April 30. Boeing The index fell the most, falling 6.7%. the Standard & Poor's 500 And Nasdaq Composite The indices fell 0.7% and 0.4%, respectively, after reaching record levels earlier in the day.
Nasdaq Composite on Thursday
Shares of chipmaker and artificial intelligence company Nvidia rose 10%, sending shares above $1,000, after posting stronger-than-expected financial first-quarter results and announcing a 10-for-1 stock split.
Fiscal second-quarter revenue guidance of about $28 billion also beat LSEG's consensus estimate of $26.61 billion — a sign that the company doesn't see its momentum slowing. At the bottom line, analysts expect earnings of $5.95 per share.
Nvidia's results were a focal point on Wall Street, as traders hoped for signs that excitement around artificial intelligence is not waning. With a market capitalization of $2.3 trillion, Nvidia also has significant influence at scale Standard & Poor's 500.
However, the majority of stocks in the broad market index fell negatively on Thursday, indicating a lack of market breadth. More than 400 names in the S&P 500 were lower, with the IT sector being the only positive sector for the day.
The market “has some slack,” Craig Johnson, chief market technician at Piper Sandler, wrote in a note Thursday. “The strange combination of leadership in this market, combined with collapses in transportation stocks and modest amplitude readings, makes us not very confident that a new bull run will continue from current levels.”
May services and manufacturing data beat economists' expectations, according to S&P Global purchasing managers surveys released Thursday. Labor market data also came in stronger than expected, adding to investors' concerns that the Federal Reserve will not cut interest rates soon. Traders are currently pricing in just a 46.5% chance that the Fed will cut interest rates at its September meeting, according to the CME FedWatch tool.
Correction: A previous release misstated consensus revenue for Nvidia's fiscal second quarter.
