- Nasdaq higher after worst session since April
- NVIDIA closes up 6.7%
- FedEx earnings on deck
4:05pm: NVIDIA snaps losing streak
Tuesday marked another mixed day for US stocks, with the Nasdaq pulling higher as the Dow Jones shed almost 300 points.
Boosted by a 6.7% gain in NVIDIA, the Nasdaq added 1.3% at 17,717 points and the S&P 500 was up 0.4% at 5,469 points as the Dow Jones shed 0.8% at 39,112 points.
After the closing bell, investors will be turning their attention to FedEx's quarterly earnings report.
12:10pm: NVIDIA bounces back
Tech stocks moved higher at midday, led by a rebound in chipmaker NVIDIA’s stock, which gained 6% at about $125 after entering correction territory on Monday.
This saw the Nasdaq add 1.2% at 17,701 points and the S&P 500 was up 0.3% at 5,463 points, while the Dow Jones slipped 0.8% at 39,102 points.
XTB research director Kathleen Brooks noted that the recent selloff in NVIDIA stock has shone a light on volatility indicators, which have been at depressed levels for the last few months.
“The Vix, which measures volatility in the S&P 500, has moved higher in recent sessions. It is currently at 13.4, which is still below the average for the last 12 months of 14.5,” Brooks said.
“Thus, this sell-off is not particularly volatile so far, which explains why the sell off in Nvidia and Super Micro Computer have not led to a broader sell off in other asset classes, or in other regions.”
Meanwhile, SolarEdge Technologies shares plunged almost 20% as it warned it may incur an $11.4 million loss as the result of a major customer filing for bankruptcy.
Carnival, on the other hand, added more than 8% on positive second quarter earnings.
9.39am: Wall Street gets off to mixed start
US stocks have opened mixed today, with the Nasdaq recovering after a tough Monday, while the other main indexes kept relatively flat.
The Nasdaq was up around 0.5% at the start of trading, while the S&P 500 lifted 0.15%.
Meanwhile, the Dow Jones has stumbled at the open, dropping around 0.15%.
While Nvidia has bounced 2.5% after a 6% drop on Monday, other companies making moves included Solaredge Technologies, which slumped 18% after launching a new US$300 million debt offering for notes which mature in 2029.
Pool Corp (NASDAQ:POOL) (Pool Corp (NASDAQ:POOL)), the wholesale pool supply seller, plunged close to 10% after it warned its full-year results would be lower than the market and management had forecast.
8.41am: Wall Street mixed ahead of open
US stocks are mixed in premarket trading, with the Nasdaq looking to rise at the open following its worst session since April.
Tech giant Nvidia saw its shares drop more than 6% yesterday, pushing the Nasdaq lower and marking its worst daily drop since April 19.
Shares of the AI chipmaker are on track to lift 2.5%, while the Nasdaq is positioned to open 0.3%.
Now debates are growing amongst analysts over whether Nvidia's drop was a sign of worse things to come or a correction in its valuation amid profit taking from shareholders.
David Morrison at Trade Nation said: "In some ways, this makes for a pleasant diversion away from the incessant speculation over when the Federal Reserve will make its first rate cut.
"But this remains the overriding issue in considering how much more upside there may be in the US stock market before we see some kind of correction.
"Bear in mind, it was only a few days ago when the S&P crossed above 5,500 while the NASDAQ 100 broke above 20,000, both for the first time.
"There’s only been a modest pull-back since then, and markets are now waiting for the next catalyst for a significant move."