Stocks fell Thursday, with the Dow Jones Industrial Average registering its worst day of 2024, as a post-earnings rally in Nvidia failed to lift the broader market.<\/p>\n
The 30-stock Dow slid 605.78 points, or 1.53% for its worst session of the year. Boeing was the biggest laggard in the Dow, falling 7.5%. The S&P 500 dropped 0.74%, and the Nasdaq Composite tumbled 0.39% after both indexes reached record highs earlier in the day.<\/p>\n
Chipmaker and artificial intelligence darling Nvidia surged 9.3%, sending shares above $1,000, after posting stronger-than-expected fiscal first-quarter results and announcing a 10-for-1 stock split.<\/p>\n
Fiscal second-quarter revenue guidance of about $28 billion also beat an LSEG consensus forecast of $26.61 billion \u2014 a sign the company doesn\u2019t see its momentum slowing. For the bottom line, analysts expect a profit of $5.95 per share.<\/p>\n
Nvidia\u2019s results have been a focal point for Wall Street, as traders hoped for signs that the excitement around AI is not waning. With its market cap of more than $2.5 trillion, Nvidia also has considerable sway over the broad S&P 500.<\/p>\n
However, the majority of the stocks in the broad market index turned negative Thursday, indicating a lack of market breadth. More than 400 names in the S&P 500 were lower, and information technology was the only positive sector for the day.<\/p>\n
Stronger than expected economic data also evaporated the rally on Thursday as investors cut their odds of a rate cut in September. Services and manufacturing data for May both topped economists\u2019 expectations, according to purchase manager surveys from S&P Global released Thursday. Labor market data also beat estimates, adding to investors\u2019 concerns the Federal Reserve will not lower interest rates soon.<\/p>\n
Traders are currently pricing just a 51% chance the Fed will cut rates in its September meeting, down from 58% a day ago and nearly 68% in the prior week, according to the CME FedWatch Tool. When the level falls, below 60% it\u2019s viewed as no longer likely that the Fed will take action.<\/p>\n
The market has \u201csome loose footing,\u201d Piper Sandler chief market technician Craig Johnson wrote in a Thursday note. \u201cThis market\u2019s strange mix of leadership, combined with breakdowns in transportation stocks and mediocre breadth readings, makes us not so confident that a new leg higher will be sustained from current levels.\u201d<\/p>\n
This is a developing story. Please check back for updates.<\/em><\/p>\n<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Stocks fell Thursday, with the Dow Jones Industrial Average registering its worst day of 2024, as…<\/p>\n","protected":false},"author":1,"featured_media":3852,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":["post-3851","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/posts\/3851","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/comments?post=3851"}],"version-history":[{"count":0,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/posts\/3851\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/media\/3852"}],"wp:attachment":[{"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/media?parent=3851"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/categories?post=3851"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/tags?post=3851"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}