Nasdaq leads Wall St losses as Nvidia slides; Walmart hits record high

nasdaq leads wall st losses as nvidia slides; walmart hits record high

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., February 20, 2024. REUTERS/Brendan McDermid

By Amruta Khandekar and Bansari Mayur Kamdar

(Reuters) -The tech-heavy Nasdaq led losses on Wall Street on Tuesday as chipmaker Nvidia fell sharply ahead of its highly anticipated earnings report, while retail industry bellwether Walmart’s upbeat forecast limited losses on the Dow.

nasdaq leads wall st losses as nvidia slides; walmart hits record high

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., February 20, 2024. REUTERS/Brendan McDermid

Shares of the chip designer fell nearly 6%, while the broader Philadelphia semiconductor index shed 2.5% as other chip stocks also followed.

Investors are worried if Nvidia’s quarterly results, expected after markets close on Wednesday, will justify its lofty valuation and add to the frenzy around artificial intelligence (AI) or hurt AI optimism.

nasdaq leads wall st losses as nvidia slides; walmart hits record high

FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 9, 2024. REUTERS/Brendan McDermid//File Photo

AI-fueled bets have helped Nvidia become the third-most valuable U.S. company and recently replace Tesla as Wall Street’s most traded stock. Tesla shares fell 3.9%.

“The sellout that we’re seeing today is driven by the reversal in SMCI (Super Micro Computer) because a lot of hot money was chasing these AI names and then we had the vicious selloff on Friday,” said Dennis Dick, a trader at Triple D Trading.

Shares in Super Micro Computer extended losses by 11.3%, after finishing down 20% on Friday as investors took a break from betting on the stock as a big beneficiary of strong AI technology demand.

Walmart hit a record high and was last up 3.4% after the U.S. retail giant forecast fiscal 2025 sales largely above Wall Street expectations and raised its annual dividend by 9%. This helped cushion the impact on Dow Jones.

The S&P 500 consumer staples sector, which houses Walmart, rose 1.1%, while information technology dropped 1.8%.

A weeks-long rally on Wall Street was stalled by hotter-than-expected U.S. inflation data last week that dampened market expectations for an imminent start to the Federal Reserve’s easing cycle.

The rate cut is expected in June, according to a slim majority of economists polled by Reuters, who also flagged risk of a further delay in the first cut.

Investors are awaiting the release of minutes from the Fed’s latest policy meeting as well as remarks from a slew of central bank officials later this week.

At 11:40 a.m. ET, the Dow Jones Industrial Average was down 49.57 points, or 0.13%, at 38,578.42, the S&P 500 was down 32.50 points, or 0.65%, at 4,973.07, and the Nasdaq Composite was down 195.28 points, or 1.24%, at 15,580.37.

Smart-TV maker Vizio jumped 14.9% after Walmart said it would buy the company for $2.3 billion.

Discover Financial Services surged 14.4% on Warren Buffett-backed consumer bank Capital One’s plans to acquire the U.S. credit card issuer in a $35.3 billion deal.

Intel added 0.6% following a report on Friday that the Biden administration is in talks to award more than $10 billion in subsidies to the semiconductor firm.

Declining issues outnumbered advancers for a 1.31-to-1 ratio on the NYSE and for a 1.63-to-1 ratio on the Nasdaq.

The S&P index recorded 27 new 52-week highs and three new lows, while the Nasdaq recorded 53 new highs and 65 new lows.

(Reporting by Amruta Khandekar and Bansari Mayur Kamdar; Editing by Shinjini Ganguli)

News Related

OTHER NEWS

From arts to sciences: Once a teacher, always a teacher

Despite doing education at the university, Mellon Kenyangi, also known as Mama Bear, did not think of going to class, and teaching students was her dream job.“Since it was not ... Read more »

WC squad was picked on players’ performance, says Pramodya

213 Sri Lanka Cricket’s Chairman of Selectors, Pramodya Wickramasinghe reported to the Sports Ministry’s Special Investigation Unit( SMSIU) for the Prevention of Sports Offences yesterday for the second day. He ... Read more »

Malindu Dairy bags Industrial Excellence Silver Award

137 Malindu Dairy (Pvt) Ltd., a leading food production company in Sri Lanka, won the Silver Award in the medium-scale dairy and associated products category at the Industrial Excellence Awards ... Read more »

Africans Urged to Invest Among themselves, Explore Investment Opportunities in Continent

Africans Urged to Invest Among themselves, Explore Investment Opportunities in Continent Addis Ababa, November 27/2023(ENA)-The Embassy of Angola in Ethiopia has organized lecture on the “Foreign Investment Opportunities in Angola ... Read more »

Mohan Wimalaratne will lead Police this season

144 The dynamic front row player Mohan Wimalaratne will lead the Police Sports Club Rugby team at the upcoming Nippon Paint Sri Lanka Rugby Major League XV-a-side Rugby Tournament scheduled ... Read more »

Church assists the disabled in Bulawayo

Dozens of people living with disabilities from New Hope Inclusive in Entumbane, Bulawayo on Saturday last week received an early Christmas gift in the form of groceries. The groceries were ... Read more »

Somalia Joins East African Community

The East African Community (EAC) Summit of Heads of State has admitted the Federal Republic of Somalia to the regional bloc, making it its 8th member country. The decision was ... Read more »
Top List in the World