Snatching defeat from the jaws of victory
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The US stock indices are snatching defeat from the jaws of victory.
The Dow – from the start – did not really react positively to the better-than-expected Nvidia earnings after the close yesterday.
However, the S&P index and the NASDAQ index did move to new record highs earlier today, until stronger than expected S&P/Global PMI sent yields higher. Stocks started to erode its gains. The S&P moved negative. Later the Nasdaq followed suit, and before long the markets snatched defeat from the jaws of victory.
An alternative headline might be “Concerns of inflation > Nvidia earnings”
At the closing bell:
- The Dow industrial average fell -608.79 points or -1.53% at 39065.25
- S&P index fell -39.17 points or -0.74% at 5267.85
- NASDAQ index fell -65.51 points or -0.39% at 16736.03.
The interest rate-sensitive Russell 2000 index fell -33.30 points or -1.60% at 2048.40.
Looking at the US yields, the 2-year note rose 5.7 basis points to 4.935%. The 10-year yield rose 4.5 basis points to 4.478%. The two-year yield is up 10.8 basis points this week.
Despite the declines, Nvidia still held onto and then closed up $8.49 or 9.32% at $1037.99. That is a record close.
Over some of the other major large-cap stocks did not fare as well:
- Meta Platforms, -0.43%
- Amazon -1.14%
- Super Micro Computers -2.96%
- Alphabet, -1.60%
- Microsoft, -0.82%
- Tesla -3.54%
- Netflix -0.75%
- AMD, -3.08%
- Snowflake -5.36%
Most of these stocks were trading in positive territory at some point today.