Are you keeping an eye on the latest in the stock market? Here’s a rundown of what happened on Tuesday:
US stocks remained relatively stable on Tuesday, with AI chipmaker Nvidia (NVDA) starting to rebound after a three-day decline. The Nasdaq Composite (^IXIC) rose by around 0.7%, while the S&P 500 (^GSPC) saw a 0.2% increase. However, the Dow Jones Industrial Average (^DJI) was the only major index that ended in the negative, dropping by approximately 0.3% after a strong start to the week with a 200-point surge.
Investors are adjusting their portfolios for the end of the quarter, especially as Nvidia’s slide impacted the tech sector’s recent momentum. As the quarter comes to a close, investors are looking to secure profits from AI-related stocks. This raises the question of whether further losses are on the horizon.
Nvidia’s stock saw a slight recovery of over 3% after Monday’s 6% drop. The tech sector’s stumble has prompted a rotation from tech stocks to value stocks, with the Dow showing signs of stability.
In economic news, all eyes are on Friday’s update to the Personal Consumption Expenditures (PCE) index, a key inflation measure for the Federal Reserve. Governor Michelle Bowman emphasized a willingness to raise interest rates if needed to control inflation.
The housing market also made headlines, as home prices hit a new record high in April. However, annual growth slowed down compared to the previous month. Low inventory, soaring mortgage rates, and exorbitant home prices continue to present challenges for potential buyers, with experts predicting a prolonged housing market struggle.
Consumer confidence dipped slightly in June, with the Conference Board index falling to 100 from 101.3 in May. Despite this decline, current labor market views remain positive, offsetting concerns about the future. If weaknesses in the labor market persist, consumer confidence could weaken in the upcoming months.
Looking ahead, market watchers are starting to consider potential risks for 2025, including the expiration of the Trump tax cuts. Treasury Secretary Janet Yellen highlighted the impact of the tax cuts’ expiration on the markets, stressing the need for careful investment planning despite the uncertainties.
As Nvidia continues to navigate market fluctuations, it’s essential to understand the company’s performance. Technical analyst Jonathan Krinsky provided valuable insights into Nvidia’s recent stock movement, emphasizing the importance of historical trends and market dynamics.
Stay tuned for more updates and insights on the latest developments in the finance world on Extreme Investor Network.