- Wall Street mixed
- Nvidia closes down 6%
4:10pm: Tough day for tech stocks
The Nasdaq extended its losses at Monday’s close, down 1.1% at 17,496 points, weighed down by NVIDIA which shed 6.7% at about $118.
This marked the third day of losses for the chipmaker, which has lost about $500 billion from its market cap since reaching a record high and briefly becoming the world’s most valuable company last week.
The S&P 500 was down 0.3% at 5,447 points while the Dow Jones gained 0.7% at 39,411 points.
12:07pm: Nasdaq in the red
US stocks were mixed at midday as the continued selloff of chipmaker NVIDIA weighed on the tech-heavy Nasdaq.
The Nasdaq fell 0.2% at 17,647 points while the Dow Jones had gained 0.9% at 39,494 points and the S&P 500 was up 0.3% at 5,480 points.
NVIDIA was down 5% at about $120, bringing its market capitalization back under $3 trillion ahead of its Annual Meeting of Shareholders being held on Wednesday.
IG chief market analyst Chris Beauchamp highlighted that stocks were rallying, except for tech stocks.
“Last week saw Nvidia soar and the Nasdaq 100 hit 20,000, but the new week has continued where Friday left off, with old economy stocks rallying and tech continuing to drop back,” Beauchamp said.
“This kind of rotation is very healthy for a continuation of the rally into July.”
9.37am: US stocks open flat
Wall Street has opened flat on Monday, with all three of the main indexes failing to register moves of more than 0.2%.
Despite the indexes remaining subdued, several stocks have started the week making significant moves, including Nvidia, which dropped 2% after becoming the world's largest company last week.
Budweiser and Bud Light owner AB InBev opened nearly 2.5% higher after it was upgraded by UBS to a 'buy' from 'neutral'.
Medical device developer ResMed fell close to 8% after reports that Eli Lily's weight loss drug reduced the severity of obstructive sleep apnea, posing a threat to the group's products.
Ferrari (NYSE:RACE) (Ferrari (NYSE:RACE)) started the day close to 1.5% higher as it continued to benefit from the announcement of a new production factory and the pricing of its upcoming EV model.
8.13am: Nvidia falls continue
Wall Street is heading for a mixed start, futures markets are indicating, with a 2% premarket falls for Nvidia weighing on expectations for the Nasdaq.
Nasdaq 100 futures are down 0.1%, while those for the S&P 500 are flat and the Dow Jones and Russell 2000 are both pointing to a 0.3% gain.
After Nvidia became the largest company in the world last Tuesday and then opened over 3% higher on Thursday, from this peak it fell around 10% by Friday's close.
The chip colossus is a key stock to watch today, says Deutsche Bank strategist Jim Reid.
"Is this a brief hiccup, or the start of some air being let out of the ballon? Interestingly our very prescient equity strategists have put out a note over the weekend arguing for a breather in US markets partly due to stretched positioning and a buy back black-out starting next week ahead of Q2 earnings."
There is some US macro data today, the Dallas Fed manufacturing activity survey, while Federal Reserve officials Waller and Daly both speak.
Later in the week we have US consumer confidence index, new home sales, retail inventories, durable goods orders, initial jobless claims and on Friday the Fed's preferred inflation gauge, the PCE index, plus personal income and spending data.