Is the US stock market over because Nvidia crashed?

wallstreetcn ·  Jun 24 20:34

Nvidia fell 6.7% overnight, dragging down the technology sector, while the energy and banking sectors performed well. Some analysts believe that this pullback is a "quite healthy" sector rotation.

After topping the market value chart of US stocks last week, Nvidia has fallen for three consecutive days, dragging down the market.

Overnight, Nvidia, known as the "AI leader", fell sharply by 6.7%, marking the largest single-day decline in two months and entering a technical correction phase. Currently, Nvidia has fallen for three consecutive days, down more than 16% from last Thursday's high, and its market value has fallen below US $3 trillion, ranking third in the US stock market.


Affected by this, the S&P 500 index fell for three consecutive days to a new low of the week, while the Nasdaq and Nasdaq 100 fell for three consecutive days away from the historical highs. Looking at the sectors, the energy, finance, and utilities sectors performed well, all up about 1%, while the technology sector was the biggest drag, down more than 2%.


The "Seven Sisters" of technology stocks have also retreated from their highs, almost giving back all the gains since the CPI data was released at the beginning of the month.


What is the impact on the US stock market?

Just as it has just taken the throne of "Global Stock King", Nvidia has suffered a large-scale sell-off, evaporating its market value by about $430 billion in three days, setting a record for the largest three-day market value decline of a single listed company in history.

Wall Street analysis previously pointed out that the "Triple Witching Day", frequent cashing out of Nvidia executives, and profit-taking by some investors have all undermined Nvidia's stock performance.

Will Nvidia's current correction continue? What is the impact on the US stock market?

Larry Tentarelli, Chief Technical Strategist at Blue Chip Daily Trend Report, believes that Nvidia's correction is actually "quite healthy":

"What we've seen last week and this week is healthy rotation. This is actually a very good pause for the technology sector and the hot spots are rotating to other industries that have been in a decline. "

Driven by the AI frenzy, Nvidia's total cumulative increase since the beginning of the year is still as high as 145%, leading to a cumulative increase of 14% for the S&P and setting a record of 31 closing highs.


Currently, Wall Street is waiting eagerly for the PCE price index, which is expected to be another major catalyst for the US stock market in the near future, to be released on Friday.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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