Search Mark
Home / Global Stock Markets

Tech Stocks Weigh on Nasdaq; Nvidia Down 6.7%

Tech Stocks Weigh on Nasdaq; Nvidia Down 6.7%

US markets closed mixed on Monday, with the Dow rising 260 points. Nvidia plunged 6.7%, dragging the Nasdaq lower.

This week, investors are focused on the Fed’s preferred inflation measure, the PCE data, and earnings reports from FedEx and Micron. Chicago Fed President Austan Goolsbee mentioned that slowing inflation data could open the door to more accommodative policies.

Signs of market fatigue are emerging, especially with Nvidia facing continuous sell-offs. Nvidia fell 6.7% on Monday, marking its third consecutive day of significant losses. The stock has dropped over 16% from its recent peak, entering a correction phase.

Last week, Nvidia briefly surpassed Microsoft to become the most valuable company in the US stock market, but has since retreated.

Katie Nixon, Chief Investment Officer at Northern Trust Wealth Management, commented on Nvidia: “After an extreme price surge, the stock might hit some speed bumps ahead. This isn’t due to concerns about the fundamentals of the AI giant, but rather because the stock’s rapid rise has made the market more cautious.”

US Stocks

Fundamental Analysis: 

Major tech stocks were mostly down, with Nvidia dropping over 6%, marking its largest single-day drop in two months, and its market cap falling below $3 trillion. Netflix fell over 2%, Amazon nearly 2%, and Microsoft and Google slightly declined.

The semiconductor, computer hardware, and software sectors led the declines, with AMD down over 8%, Dell Technologies, Qualcomm, and ARM down over 5%, Navitas Semiconductor down over 4%, and ASML, Broadcom, and TSMC down over 3%.

Most popular Chinese stocks rose, with the Nasdaq Golden Dragon China Index up 1.30%. Li Auto and NIO rose over 3%, XPeng and Futu Holdings over 2%, Tencent Music, NetEase, and Alibaba over 1%, and, Weibo, iQiyi, and Baidu slightly up. Bilibili, Pinduoduo, Full Truck Alliance, and Vipshop fell over 1%.

Technical Analysis: 

Tech Stocks Weigh on Nasdaq; Nvidia Down 6.7%

(S&P 500 Index, 1-day chart) 

Market Trends: 

  • Dow Jones: Up 260.88 points, or 0.67%, at 39,411.21
  • Nasdaq: Down 192.54 points, or 1.09%, at 17,496.82
  • S&P 500: Down 16.75 points, or 0.31%, at 5,447.87

Hong Kong Stock Market

 Fundamental Analysis: 

Hong Kong’s major indices were mixed. Tech stocks showed divergent trends, with Meituan up over 2%, NetEase, Tencent, and Alibaba up nearly 1%, Lenovo down over 3%, and Xiaomi down over 1%.

Education stocks led the gains, with New Oriental up over 6%. Auto stocks were active, with Leapmotor and Great Wall Motor up over 3%.

Semiconductor stocks continued to decline, with Hua Hong Semiconductor down over 4%. Among individual stocks, Chinese Estates Holdings surged 29%, and Fosun Pharma, which is set to be privatized, rose nearly 19%.

Semiconductor stocks extended their losses, with Hua Hong Semiconductor down over 4%. The US Treasury released a 165-page draft on August 21, proposing restrictions on investments in China’s high-tech sectors.

The “Notice of Proposed Rulemaking” (NPRM) aims to limit US entities’ investments in Chinese semiconductor, quantum information technology, and AI sectors, detailing specific regulations.

Technical Analysis:  

Tech Stocks Weigh on Nasdaq; Nvidia Down 6.7%

(Hang Seng Index, 1-day chart) 

Market Trends: 

  • Hang Seng Index: Up 0.45%, at 18,109.2
  • Hang Seng Tech Index: Down 0.26%, at 3,668.06
  • Hang Seng China Enterprises Index: Up 0.54%, at 6,475.96

FTSE China A50 Index

Fundamental Analysis: 

Mainland China’s major indices fluctuated, with the ChiNext Index down 1.35%. The chip and semiconductor sectors corrected, while industrial machinery and reducers showed strength.

Education, auto parts, textile manufacturing, general equipment, and new metal materials sectors, along with industrial machinery, PVDF, reducers, and PEEK materials, led the gains.

The semiconductor and components, electronic chemicals, communication equipment, consumer electronics, and precious metals sectors, along with automotive chips, AI PCs, AI phones, and CPO concepts, led the declines.

Technical Analysis:  

Tech Stocks Weigh on Nasdaq; Nvidia Down 6.7%

(SSE Composite Index, 1-day chart) 

Market Trends: 

  • Shanghai Composite Index: Down 0.38%, at 2,951.95
  • Shenzhen Component Index: Down 0.62%, at 8,868.40
  • ChiNext Index: Down 1.35%, at 1,708.09

Risk Disclosure
Trading in financial instruments involves high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding the investor’s initial investment could incur within a short period of time. The past performance of a financial instrument is not an indication of its future performance. Investments in certain services should be made on margin or leverage, where relatively small movements in trading prices may have a disproportionately large impact on the client’s investment and the client should therefore be prepared to suffer significant losses when using such trading facilities.

Please ensure you read and fully understand the trading risks of the respective financial instrument before engaging in any transaction with Doo Prime’s trading platforms. You should seek independent professional advice if you do not understand any of the risks disclosed by us herein or any risk associated with the trade and investment of financial instruments. Please refer to Doo Prime’s Client Agreement and Risk Disclosure Statement to learn more.

This information is addressed to the general public solely for information purposes and should not be taken as investment advice, recommendation, offer, or solicitation to buy or sell any financial instrument. The information displayed herein has been prepared without any reference or consideration to any particular recipient’s investment objectives or financial situation. Any references to the past performance of a financial instrument, index, or a packaged investment product shall not be taken as a reliable indicator of its future performance. Doo Prime and its holding company, affiliates, subsidiaries, associated companies, partners and their respective employees, make no representation or warranties to the information displayed and shall not be liable for any direct, indirect, special or consequential loss or damages incurred a result of any inaccuracies or incompleteness of the information provided, and any direct or indirect trading risks, profit, or loss arising from any individual’s or client’s investment.

Share to

Global Stock Markets

Nasdaq, S&P 500 Reach New Highs, Tesla Climbs 6%

Nasdaq and S&P 500 hit record highs as Tesla surged over 6%. Investors are closely watching upcoming inflation data and earnings reports

2024-7-11 | Global Stock Markets

Stocks Mixed as Nasdaq, S&P 500 Soar to Record Highs

US stocks closed mixed with the S&P 500 and Nasdaq setting new record highs. Powell emphasized the need to avoid premature rate cuts despite easing inflation

2024-7-10 | Global Stock Markets

US Stocks Closed for Independence Day Holiday

Due to the Independence Day holiday, US stocks market was closed. The dollar fell for the third consecutive trading day as trading volume remained light

2024-7-5 | Global Stock Markets