U.S. stocks sank Thursday after a tech-led rally fueled by AI chip giant Nvidia’s (NVDA) blowout results and stock-split plans gave way to a broad sell-off.
The Dow Jones Industrial Average led the indexes lower, falling 1.5% Thursday, putting the index on track to finish the week lower. The S&P 500 shed 0.7%, while the Nasdaq Composite, up more than 1% early in the session, lost 0.4%.
Nvidia (NVDA) shares soared above $1,000 after its blockbuster quarter and guidance,as CEO Jensen Huang forecast “a lot of” revenue from its upcoming next-generation Blackwell chip. The AI behemoth's results renewed optimism about robust AI spending, helping tech stocks hold onto the morning's gains.
U.S. Treasury yields jumped after purchasing managers index data showed business activity grew at its fastest pace in more than two years in May, raising concerns that a resilient U.S. economy will delay interest rate cuts by the Federal Reserve.
Stock Indexes Wrap: Nvidia Soars, Sparing Some AI Stocks Pain of Broad Sell-Off
5 hr 1 min ago
The Dow
All but one of the Dow’s 30 components closed in the red Thursday. The one exception, Merck (MRK), finished flat.
Boeing (BA) led the index lower, falling 7.6% after Chief Financial Officer Brian West said he expects the plane maker’s cash flow and production problems to persist through the second quarter.
Tech giants Microsoft (MSFT) and Amazon (AMZN), up earlier in the day, fell 1.1% and 0.8%, respectively, as the optimism fueled by Nvidia’s earnings waned.
The S&P 500
Nvidia (NVDA) jumped 9.3% after reporting another quarter of scorching hot revenue and earnings growth. The company also announced plans to split its stock 10-for-1.
Utilities companies Vistra (VST) and Constellation Energy (CEG), which supply AI data centers with the immense amount of electricity they require, gained 1.9% and 0.5%, respectively.
Ralph Lauren (RL) rose 3.3% after the fashion company reported better-than-expected quarterly results.
Dupont de Nemours (DD) ticked up 0.5% after announcing plans to split into three independent companies by spinning off its water and electronics units.
Live Nation (LYV) slumped 7.8% after the Department of Justice filed an antitrust lawsuit against the Ticketmaster parent.
Several mid-sized and regional banks fell after a strong Purchasing Managers Index print sent Treasury yields higher, tightening financial conditions. Comerica (CMA) slid 5.7%, while Charles Schwab (SCHW) fell 3.9% and KeyCorp (KEY) shed 3.8%.
Chipmaker Advanced Micro Devices (AMD), boosted early in the session by Nvidia’s earnings, slumped 3.1%. Super Micro Computer (SMCI), also an AI beneficiary, lost 3%.
The Nasdaq 100
PDD Holdings (PDD) climbed 4.5%, building on yesterday’s gains following a better-than-expected earnings report.
Synopsys (SNPS) rose 2.3% after Ansys (ANSS) shareholders approved the former’s acquisition of the engineering software company. Ansys stock climbed 0.6%.
ASML Holding (ASML) was one of the few AI winners to hold onto at least some of the morning’s gains. It rose 1.3%.
GlobalFoundries (GFS) tumbled 8.9% after it priced a secondary public offering of nearly $1 billion of its stock, which is being sold by its largest shareholder, Mubadala Technology Investment Company.
Boeing's Cash Flow, Delivery Struggles Likely To Continue in Q2, CFO Says
6 hr 28 min ago
Boeing's (BA) shares tumbled Thursday after Chief Financial Officer (CFO) Brian West said during a conference Thursday that the company's cash flow and production woes are likely to continue in the current quarter.
The company will likely continue to see similar negative cash flow in the second quarter after burning through $4 billion in the first quarter, West said, as production and deliveries were forced to slow down amid supply chain issues and a series of safety incidents that sparked investigations from regulators and law enforcement.
West said during Wolfe Research's Global Transportation & Industrials Conference Thursday that Boeing expects cash flow to be more positive in the second half of 2024.
Analysts currently project Boeing to burn through about $2.12 billion in cash for the second quarter, returning to positive free cash flow in the second half of the year, according to estimates compiled by Visible Alpha.
Boeing shares were down more than 7% late in the afternoon on Thursday and are 33% lower this year.
-Aaron McDade
How Much More Room Does Nvidia's Stock Have To Rise?
7 hr 30 min ago
Nvidia (NVDA)shares surged after the chipmaker's better-than-expected earnings, but analysts indicated the chipmaker's stock may still have a ways to go before reaching its peak.
Nvidia shares were up more than 11% Thursday afternoon. They've more than doubled in value since the start of the year, significantly outpacing gains for theand theNasdaq 100, which have climbed close to 12% over the same period.
Analysts at UBS, Bank of America, Citi, Jefferies, JPMorgan, Wedbush, Melius Research, Bernstein, and Mizuho all lifted their price targets for Nvidia after the chipmaker's earnings release.
Bank of America and Jefferies were among those with the highest new targets, at $1,320 and $1,350, respectively. Bernstein followed with $1,300, up from $1,000 previously.
On the lower end, Mizuho's objective increased to $1,180 from $1,000, while JPMorgan lifted its target to $1,150 from $850.
See here for more about what analysts have to say about Nvidia's earnings.
-Naomi Buchanan
Live Nation Stock Slides After DOJ Files Antitrust Suit
8 hr 39 min ago
Live Nation Entertainment (LYV) shares fell in intraday trading Thursday after the Department of Justice (DOJ) filed an antitrust lawsuit against the Ticketmaster parent, which could lead to the breakup of the company.
The suit alleged that Live Nation and Ticketmaster exercise monopoly power to violate Section 2 of the Sherman Antitrust Act.
"As a result of its conduct, music fans in the United States are deprived of ticketing innovation and forced to use outdated technology while paying more for tickets than fans in other countries," said the DOJ in a press release. "At the same time, Live Nation-Ticketmaster exercises its power over performers, venues, and independent promoters in ways that harm competition."
Bloomberg reported late Wednesday that the DOJ and a group of states were planning to file the suit in the Southern District of New York. That report sent Live Nation shares tumbling in extended trading. The Wall Street Journal in April also reported about impending litigation.
Shares of Live Nation were down more than 6% early in the afternoon Thursday, making it the worst-performing stock in the S&P 500.
DuPont Announces Plans to Split into Three Public Companies, Names New CEO
9 hr 39 min ago
DuPont (DD) said Wednesday it plans to split into three publicly traded companies, spinning off its electric and water businesses.
The DuPont name will continue on, focusing on industrials, while the water and electronics operations will become independent companies to focus more on their respective businesses.
The company said this separation will allow the resulting companies to better allocate capital and pursue mergers and acquisition opportunities.
"At separation, each of the three companies will have strong balance sheets, attractive financial profiles and compelling growth opportunities," DuPont said in a press release. The company expects the separations to be completed in 18 to 24 months.
The company also said its chief financial officer, Lori Koch will take over as chief executive in June, and as such will oversee thespinoffs. Koch replaces Ed Breen, will continue in the role of executive chairman.
Dupont shares were up 0.2% late in the morning Thursday. They've gained just over 2% so far this year.
-Taylor Tompkins
Where is Nvidia Stock Price Headed After Post-Earnings Pop?
10 hr 49 min ago
Shares inartificial intelligence (AI)darling Nvidia (NVDA) jumped more than 6% in extended trading Wednesday after the company released anotherblowout quarterly earnings reportand unveiled a 10-for-1stock split. With the stock moving above the closely watched psychological $1,000 level, here’s where the chart says the stock may be headed next.
:max_bytes(150000):strip_icc()/NVDAChart-9da9d2b5bdd6438da46aa0b4108b2642.GIF "Markets News, May 23, 2024: Dow Tumbles 600 Points as Nvidia Rally Fizzles, Treasury Yields Climb (1)")
Nvidia shares have remained in a long-term uptrend since the50-day moving average (MA)crossed above the 200-day MA in late January last year to form a bullishgolden crossbuy signal, with buyers promptly snapping up minor retracements over the past 14 months.
Interestingly, tradingvolumeshave trended downward following the stock reaching its record high at $974 in early March, indicating that larger market players have remained on the sidelines ahead of the AI chipmaker’s fiscal first-quarter report.
On Thursday morning, the stock broke out from a period of three-month consolidation to a newall-time high (ATH), which could see the shares continue their longer-term mover higher. Investors can project a futureprice targetusing a measured move. To do this, calculate the distance in dollars of the consolidation period and add that amount to thebreakoutpoint. For instance, adding $210 to Wednesday's $970 closing price projects a target of $1,180.
For those who don’t wish to chase breakouts, during periods of weakness, look forpullbacksto the top trendline of the consolidation period which will likely flip from a prior area ofresistance into support.
-Timothy Smith
Stocks Making the Biggest Moves Premarket
12 hr 3 min ago
Gains:
- Nvidia (NVDA): Shares of the AI chip giant jumped more than 6% after reporting another quarter of blowout earnings and announcing plans to split its stock 10-for-1.
- Snowflake (SNOW): Shares of the cloud-computing company rose more than 4% after it raised its full-year sales forecast amid booming demand for its AI offerings.
- Toronto-Dominion Bank (TD): Shares of the Canadian bank rose 2% after beating first-quarter revenue and adjusted earnings estimates, with strength in its primary Canadian business offsetting weakness in the U.S.
Losses:
- VF Corp (VFC): Shares of the Vans and Supreme owner fell 8% after posting a loss in its fiscal fourth quarter amid a prolonged slump in demand for its apparel.
- GlobalFoundries (GFS): Shares of the chipmaker slumped 8% after it priced a secondary public offering of $950 million of stock being sold by its largest shareholder, Mubadala Technology Investment Company.
- Live Nation Entertainment (LYV): Shares slid 5% after Bloomberg reported the Department of Justice planned to file an antitrust lawsuit against the Ticketmaster parent.
US Stock Futures Rise on Nvidia Earnings 'Halo Effect'
12 hr 37 min ago
Dow futures were up 0.1% in premarket trading Thursday.
:max_bytes(150000):strip_icc()/YM1_2024-05-23_13-05-07-1637828a5cd84766acf17b7ab82456fe.png "Markets News, May 23, 2024: Dow Tumbles 600 Points as Nvidia Rally Fizzles, Treasury Yields Climb (2)")
S&P futures were up 0.7%.
:max_bytes(150000):strip_icc()/ES1_2024-05-23_13-08-53-3985df02c8544a8c899872aa8af5fa33.png "Markets News, May 23, 2024: Dow Tumbles 600 Points as Nvidia Rally Fizzles, Treasury Yields Climb (3)")
Nasdaq futures were up 1.1%.
:max_bytes(150000):strip_icc()/NQ1_2024-05-23_13-10-58-aaa19f6e0efa4d6a89819b4f1c603d89.png "Markets News, May 23, 2024: Dow Tumbles 600 Points as Nvidia Rally Fizzles, Treasury Yields Climb (4)")
