The Nasdaq experienced a decline following this week's big gains, and investors were uneasy ahead of Federal Reserve Chair Jerome Powell's speech on Friday, which contributed to the three major U.S. stock indexes each ending the day down more than 1% on Thursday. After reaching a record high early in the day, shares of Nvidia …
The Nasdaq experienced a decline following this week’s big gains, and investors were uneasy ahead of Federal Reserve Chair Jerome Powell’s speech on Friday, which contributed to the three major U.S. stock indexes each ending the day down more than 1% on Thursday. After reaching a record high early in the day, shares of Nvidia (NASDAQ:NVDA) only marginally increased. In response to demand for its artificial intelligence processors, the business late on Wednesday provided a far better-than-anticipated projection and announced it would repurchase $25 billion worth of stock. However, all of the significant S&P 500 sectors were down for the day, and a semiconductor index fell 3.4%. In Jackson Hole, Wyoming, central bankers and other business executives met on Thursday for an annual symposium. Powell’s much awaited address on the future of the economy is scheduled for Friday.
“Despite the fact that investors want to concentrate on Nvidia and tech — and it’s been a terrific year so far — this market is still driven by Fed obsession. According to Jake Dollarhide, CEO of Longbow Asset Management in Tulsa, Oklahoma, “This is still all about what Jay Powell is going to say tomorrow to mess things up… that may cause investors to be sellers instead of buyers.” In anticipation of Nvidia’s report this week, the market had risen alongside it in the anticipation that the company’s forecast may continue the year-long boom in artificial intelligence technology stocks. The Nasdaq Composite plummeted 257.06 points, or 1.87%, to 13,463.97, the S&P 500 lost 59.7 points, or 1.35%, to 4,376.31, and the Dow Jones Industrial Average dropped 373.56 points, or 1.08%, to 34,099.42. Data released earlier on Thursday indicated that U.S. jobless benefit claims indicated a still-strong labor market, which some believe could back the Fed’s hawkish stance of longer-term increases in interest rates. Treasury yields increased a little.
Investors also considered remarks made by Patrick Harker, president of the Philadelphia Federal Reserve, who stated during a CNBC interview on Thursday that the Fed will need to maintain its low interest rates for a long. Investors are seeking clarification on whether and how long the Fed intends to maintain its high interest rates after it began raising rates in March 2022 in a bid to reduce inflation. Shares of Dollar Tree (NASDAQ:DLTR), one of the day’s losers, fell 12.9% after the retailer estimated annual earnings that was substantially below projections. 9.99 billion shares were traded on U.S. exchanges, which is lower than the 10.87 billion average for the entire session for the previous 20 trading days. On the New York Stock Exchange, declining issues outnumbered rising ones 2.95 to 1; on the Nasdaq, decliners had a 2.61 to 1 advantage. The Nasdaq Composite registered 35 new highs and 220 new lows, while the S&P 500 set 10 new 52-week highs and 13 new lows.
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