S&P 500 and Nasdaq fall from records while Nvidia falls

Two of the major stock indexes fell on Thursday after hitting record highs earlier in the session. Nvidia’s (NVDA) record rise, which catapulted it to the title of the world’s most valuable publicly traded company, also took a breather.

The S&P 500 (^GSPC) lost about 0.2% after briefly breaching the 5,500 mark for the first time, as the index failed to build on a record 31st year close. The tech-heavy Nasdaq Composite (^IXIC) hit new highs earlier in the session but closed sharply down nearly 0.8%. The Dow Jones Industrial Average (^DJI) rose about 0.7%, or about 300 points.

After a holiday break on Wednesday, Wall Street struggled to continue its success story into 2024. This year’s stock growth story has largely been driven by the excitement around the potential of AI, and no company has captured collective attention like Nvidia. For a while, it looked like the AI ​​party would continue.

But the chip giant’s shares fell more than 3% on Thursday. Despite the dip, the stock is still up more than 170% so far this year.

On Tuesday, Nvidia completed a remarkably rapid rise to temporarily usurp Microsoft (MSFT) as the most valuable company in the world – just two weeks after it dethroned Apple (AAPL) as the second most valuable company. The rise to the top has been so rapid, wrote Yahoo Finance’s Jared Blikre, that some more passive investors haven’t been able to keep up.

Elsewhere on Thursday, global central banks were in the spotlight as the Swiss National Bank cut interest rates for the second time this year. The Bank of England maintained its benchmark interest rate at a sixteen-year high, but signals pointed to a rate cut in the summer.

In the US, meanwhile, most traders continue to bet on a Fed rate cut by September, according to CME’s FedWatch tool. The bulk of the economic data came in the form of weekly jobless claims, which fell from 5,000 to 238,000 last week, versus a consensus forecast of 235,000.

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  • S&P 500 falls from record after briefly reaching the 5,500 level, Nasdaq also falls while Nvidia falls

    Stocks ended Thursday’s trading session mixed, with the Nasdaq Composite (^IXIC) and S&P 500 (^GSPC) just off their record highs.

    The Nasdaq fell about 0.8%, while the S&P 500 fell 0.2% after briefly breaching the 5,500 level earlier in the session.

    Nvidia stock (NVDA) reversed gains from earlier in the day, losing more than 3% as technology stocks fell.

    The Dow Jones Industrial Average (^DJI) rose 0.8%.

  • Chip stocks lead the decline on Nasdaq and S&P 500

    Chip stocks were among the laggards on Thursday, trailing the Nasdaq (^IXIC) and S&P 500 (^GSPC).

    Shares of Nvidia (NVDA) fell more than 3%, while Broadcom (AVGO) also fell. Qualcomm (QCOM) and Micron (MU) also fell.

    Nvidia wiped away earlier session gains as the stock, along with other tech-related names, weighed on the Nasdaq.

    The S&P 500 briefly reached the 5,500 level this morning before falling in afternoon trading.

    Semiconductor stocks fall on June 20, 2024.

    Semiconductor stocks fall on June 20, 2024.

  • Oil prices are rising, driving energy-related stocks higher

    On Thursday, West Texas Intermediate (CL=F) rose slightly to reach $82.17 per barrel, while Brent (BZ=F), the international benchmark price, rose slowly to $85.71 per barrel.

    WTI is on track for its second weekly gain after a sell-off in May. US crude futures are up about 14% year to date, while Brent is up 12% over the same period.

    Higher oil prices boosted energy-related stocks on Thursday, with the S&P 500 Energy Select ETF (XLE) rising more than 2%.

  • Amazon is already disrupting the streaming advertising market – here’s how

    Yahoo Finance’s Allie Canal reports:

    Amazon (AMZN) entered the ad-supported streaming space in January by setting all its Prime Video subscriptions to ads by default. Just six months later, the tech giant’s impact is already being felt.

    Prime Video subscriptions now automatically default to the ad-supported tier at the current monthly rates of $14.99 for Prime Delivery members and $8.99 for non-Prime members – or those who only subscribe to the independent video service. Subscribers who want the ad-free version will now see their monthly bill increase by $3 per month.

    Amazon’s entry builds on the presence of Netflix (NFLX) and Disney (DIS), which introduced their respective advertising tiers in late 2022. That means an already accelerated expansion of ad-supported options for consumers – along with potential ad buyers.

    Read more here.

  • Nvidia wipes out session gains, drops 4%

    Nvidia ( NVDA ) stock erased morning session gains and fell more than 4% on Thursday. The chip giant opened higher before entering red territory, trailing the Nasdaq and S&P 500.

    Nvidia surpassed Microsoft (MSFT) on Tuesday as the most valuable company in the world. However, on Thursday afternoon the software giant took back the crown, because the valuation was slightly above Nvidia’s market capitalization.

  • Stocks Turn Negative After the S&P 500 Briefly Crosses the 5,500 Level

    The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) entered red territory on Thursday, reversing gains from earlier in the morning.

    Both indices opened the session higher, with the S&P 500 briefly breaching the 5,500 level. At 12:50 p.m. ET, the broader benchmark was down nearly 0.2%, while the tech-heavy Nasdaq was down 0.5%.

    The Dow Jones Industrial Average (^DJI) continued to hold on to gains, while Salesforce (CRM) and ExxonMobil (XOM) led the blue chip index up 0.4%.

  • Dell and Super Micro shares on the move after Musk says companies will supply hardware for xAI

    Shares of Dell ( DELL ) and Super Micro Computer ( SMCI ) rose Thursday after xAI founder Elon Musk said the companies are providing hardware for the supercomputer his AI startup is building.

    As Yahoo Finance’s Hamza Shaban reports, the moves higher underscore Wall Street’s excitement around AI technology.

    Investors are clamoring to buy into AI companies at every level of development, from major consumer brands that sell AI-powered apps to manufacturers that provide the chips and servers that power computing infrastructure.

    Shares of Dell rose as much as 5% on Thursday, while shares of Super Micro rose nearly 9% before paring gains.

    Dell’s CEO Michael Dell initiated the jump for his company’s stock price he said in a message on X Wednesday: “We’re building a Dell AI factory with Nvidia to support Grok for xAI.”

  • Energy stocks lead gains

    Energy-related stocks led the gains Thursday, with the S&P 500 Energy Select ETF (XLE) rising more than 1%, pushing the S&P 500 (^GSPC) to new highs.

    Oil giants ExxonMobil (XOM) and Chevron (CVX) each rose more than 1.5%. The energy sector has gained more than 7% this year, compared to the 15% gain that the broader benchmark has gained since last year.

    On Thursday, the S&P 500 rose as much as 0.5%, briefly breaching the 5,500 level for the first time.

  • Trending tickers on Thursday

    The top trending tickers on Yahoo Finance on Thursday were all technology-related.

    Nvidia (NVDA)

    The chip giant’s shares rose as much as 3% on Thursday morning, climbing to new highs. Earlier this week, Nvidia overtook Microsoft (MSFT) as the most valuable company in the world.

    Dell Technologies (DELL)

    Dell shares rose after CEO Michael Dell revealed that the hardware giant was teaming up with Nvidia to build an AI factory for xAI, Elon Musk’s artificial intelligence venture.

    “We’re building a Dell AI factory with @nvidia to power @grok for @xai @elonmusk,” Dell wrote on X on Wednesday.

    Supermicrocomputer (SMCI)

    SMCI rose more than 8% after billionaire Elon Musk indicated his artificial intelligence startup xAI will use server racks from Dell and Super Micro Computer.

    Year to date, the stock is up more than 240%.

  • S&P 500 exceeds 5,500 for the first time ever, Nasdaq also climbs to new highs

    The S&P 500 (^GSPC) breached the 5,500 level for the first time on Thursday, while Nvidia (NVDA) shares continued their steady climb.

    The broader index rose 0.5% after hitting a 31st record high of the year’s close on Tuesday.

    The tech-heavy Nasdaq Composite (^IXIC) rose 0.3%, also hitting record highs during Thursday’s session.

    The Dow Jones Industrial Average (^DJI) rose 0.3%.

  • Start of housing construction reaches lowest level in four years because construction ‘continues to falter’

    New government data released Thursday shows home construction activity fell to its lowest level in four years.

    The number of new homes fell by 5.5% in May compared to the previous month, to a seasonally adjusted number of 1.277 million. Economists polled by Bloomberg had expected the start to reach 1,370 million.

    “The decline in housing supply in May is consistent with the recent slowdown in permitting, indicating that construction continues to falter this year,” Thomas Ryan, North American economist at Capital Economics, wrote after the release.

    “This challenges our prediction that construction, especially in the single-family sector, would boom this year given the lack of alternatives for buyers in the resale market.”

    Separate data released Wednesday showed homebuilders losing confidence in the housing market. The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) fell to a five-month low of 43 in June. Builders noted that the 7% mortgage rate was the culprit, leaving many potential buyers sidelines were pushed.

  • The S&P 500 hits a new high as Nvidia continues to rise

    The Nasdaq and S&P 500 opened higher on Thursday, while shares of Nvidia (NVDA) continued to rise.

    The S&P 500 (^GSPC) rose about 0.4% to hit a new all-time high after setting its 31st record of the year-end on Tuesday. The technology stock exchange Nasdaq Composite (^IXIC) climbed 0.3%. The Dow Jones Industrial Average (^DJI) fell just below the flat line.

    Nvidia became the most valuable publicly traded company in the world on Tuesday. The post-Juneteenth holiday surge continued Thursday morning as shares rose more than 2%.

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