Wall Street Today | Long Weekend Led to Market Slump, Nvidia A Close Watch

U.S. stocks traded lower Tuesday as investors returned from a holiday weekend cautiously amid earnings reports shedding light on consumers, with crucial earnings from AI-darling $NVIDIA(NVDA.US)$ expected Wednesday.

The $S&P 500 Index(.SPX.US)$ dipped 0.60%. The $Dow Jones Industrial Average(.DJI.US)$ fell 0.17%, while the $Nasdaq Composite Index(.IXIC.US)$ -0.92%, brought down by AI and semiconductor companies falling alongside a Nvidia price pullback.

News of a $35 billion credit card merger sent $Capital One Financial(COF.US)$ shares 4.8% lower after with plans to purchase $Discover Financial Services(DFS.US)$, up 10% after the news.

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Nvidia Leads AI Stocks Lower

A day before posting earnings, $NVIDIA(NVDA.US)$ fell 5% as the market opened. AI-related stocks that build computing hardware fell in concert, leading to a 3% drop in the overall semiconductor sector according to moomoo industry heat maps.

$Arm Holdings(ARM.US)$ fell 7% after a startling 60%+ jump following the chip design company's earnings.

Investor favorite $Super Micro Computer(SMCI.US)$ fell 10%, pulling back from a 100%+ gain since the start of the year.

$Advanced Micro Devices(AMD.US)$ also fell 5%.

WTI crude oil for March delivery closed down US$1.01 to settle at US$78.18 per barrel, while April Brent crude, the global benchmark, was last seen down US$1.37 to US$82.19. Futures put $Crude Oil Futures(JUN4)(CLmain.US)$ at $77.

Shares of several $Bitcoin(BTC.CC)$ related stocks fell Tuesday to follow the cryptocurrencies trading lower 1.33% after noon. $Coinbase(COIN.US)$ fell 8%, while $Marathon Digital(MARA.US)$ fekk 13% and $Riot Platforms(RIOT.US)$ fell 6%.

$Palo Alto Networks(PANW.US)$ reported fiscal second-quarter 2024 EPS of $1.46 per diluted share, above expectations of $1.30. The stock fell on the outlook for the third quarter, stating a target $1.24 to $1.26 EPS compared to $1.30 expected.

$Discover Financial Services(DFS.US)$ shares climbed 11% after the company agreed to be bought by $Capital One Financial(COF.US)$ in a $35 billion all-stock deal.

Morgan Stanley analyst and $Tesla(TSLA.US)$ bull Adam Jonas conducted an investor survey on Monday to note the overwhelming negative sentiment on the EV giant's shares. The analyst, however, continues to be bullish.

Sports-centric streaming service $FuboTV(FUBO.US)$ sued the media companies behind a new sports-streaming platform scheduled to launch this fall, alleging they wouldn't let Fubo carry a small bundle of sports-focused channels that they are now looking to include in the new service.

$Home Depot(HD.US)$ shares fell after the company reported that quarterly sales declined as home-improvement spending continues to moderate from pandemic highs.

$Walmart(WMT.US)$ jumped further into record territory Tuesday amid a busy day for the discount retail giant, which reported an earnings beat, confirmed a $2.3 billion deal to buy smart-TV maker $VIZIO(VZIO.US)$ and raised its dividend by 9%.