Stock Market Today: How markets finished off the week
US Stocks Close Mixed but Gain for the Week as AI Trade Stumbles
Stock Market Today: Why is NVidia drawing back
US stocks finished the week higher despite signs of exhaustion in the artificial intelligence (AI) trade. The Dow Jones Industrial Average led the gains with a 1.5% increase for the week, while the S&P 500 and Nasdaq 100 each rose about 0.5%.
Stock Market Performance:
Friday saw mixed results, with US stocks closing the day unevenly. However, the overall weekly performance remained positive despite the AI sector losing some momentum.
Nvidia Stock Drops:
Notably, Nvidia's stock, which has been soaring, dipped about 10% from its intra-day high of $140.76 on Thursday and Friday. Other prominent AI stocks, including Broadcom, Dell, and Super Micro Computer, also fell between 1% and 3% in Friday's trading session.
Costco Performance:
COSTCO continues to be an American staple and bring in strong revenue while paying out a reliable dividend. Value Investors are drawn to this dominating stock to its outperformance and dominance within the economy.
Economic Data:
Investors are closely monitoring new economic data amid growing speculation about a potential interest rate cut from the Federal Reserve in July. This follows a significant increase in weekly jobless claims. Although the CME FedWatch Tool currently places the likelihood of a July interest rate cut at just 10%, some economists estimate the odds to be closer to 60%.
The Fed Watch:
The Federal Reserve might consider this move to prevent a potential economic recession, especially as inflation continues to show signs of easing.
Conclusion:
The Market continues to move and break newer highs. As we see a draw back now with initial volume maybe market interests are shifting due to new economic flow. NVIDIA and other tech stocks now draw back and seem to gear for a big market shift as if a bubble is about to burst. We will continue to watch these volatile markets to support the value investors!