Home / STOCK / Stock Market Today – Nasdaq Falls 244pts, Dow -159, S&P500 Slips as Nvidia, Marvell Drag

Stock Market Today – Nasdaq Falls 244pts, Dow -159, S&P500 Slips as Nvidia, Marvell Drag

Stock Market Today – Nasdaq Falls 244pts, Dow -159, S&P500 Slips as Nvidia, Marvell Drag


Wall Street faced a significant retreat as major stock market indices recorded declines following the release of concerning inflation data. The Nasdaq Composite, known for its tech-heavy composition, fell 244 points to close at 21,460.84, marking a 1.13% drop. Meanwhile, the Dow Jones Industrial Average slipped 159 points, or 0.35%, ending at 45,482.73, and the S&P 500 lost 44 points, down 0.67% to 6,458.19.

This downturn is largely attributed to the latest reveal of July’s Personal Consumption Expenditures (PCE) data, which showed core inflation rising by 0.3% month-over-month and 2.9% year-over-year. These figures exceeded expectations and reinforced fears that the Federal Reserve is grappling with persistent price pressures, complicating its potential path towards interest rate cuts.

### Tech Sector Challenges: Nvidia and Marvell at the Forefront

The tech sector, particularly impacted by Nvidia’s performance, bore the brunt of the selling activity. Nvidia shares fell 3.15% to $174.49 amid growing concerns about decelerating data center momentum and intensifying competition, especially from Alibaba, whose stock surged 11.47% following the launch of a new advanced AI chip. Similarly, Marvell Technology plummeted 16.7% to $64.32 after offering a disappointing guidance for the third quarter, pointing towards “lumpiness” in cloud demand, which alarmed investors.

Not only did Nvidia and Marvell suffer from internal challenges, but Dell Technologies also registered a significant decline of 10%. The company faced backlash from investors for failing to meet expectations regarding future AI-related requests despite otherwise solid performance in earnings.

### Consumer Sentiment and Economic Indicators Add to Investment Woes

Consumer confidence, as measured by the University of Michigan’s sentiment index, dropped to a three-month low of 58.2 in August, which is 14% lower than a year ago. This drop in consumer morale is underlined by rising inflation expectations, where the one-year outlook climbed to 4.8%. These changes suggest that increasing prices are dampening consumer purchasing power, raising alarms about the future of consumer spending.

Despite the selloff, major indices remain on track for strong monthly gains. The Nasdaq is up approximately 2% for August, reflecting its fifth consecutive month of growth—the longest winning streak since March 2024. The S&P 500 and Dow show similar trends with gains of nearly 2% and 3%, respectively. However, September historically poses challenges for the stock market, being the worst-performing month for the S&P, Dow, and Nasdaq since 1950.

### Industrial Shares Hit Hard by Tariffs and Divestments

Caterpillar, a prominent name in the industrial sector, faced particular challenges, experiencing a 4.05% drop to $417.29. The company warned of tariff costs soaring between $1.5 billion and $1.8 billion for the year, exceeding prior estimates. This decline is compounded by Norway’s $2 trillion sovereign wealth fund divesting from Caterpillar shares due to ethical concerns regarding operations in Israel. The dual forces of escalating tariff implications and reputational risks threaten Caterpillar’s long-term outlook.

### Noteworthy Corporate Movements

In the midst of a challenging economic landscape, some companies realized positive movements. Celsius Holdings saw a 5.3% increase to $62.83 after PepsiCo significantly increased its stake in the company, while Affirm Holdings surged 13.3% to $90.60, reporting a profit that exceeded analysts’ expectations. Ambarella, Autodesk, and SentinelOne also performed well, showcasing some resilience in the broader market amidst the tech selloff.

### U.S.-China Trade Dynamics and Commodities

The competitive landscape in tech is shifting, particularly influenced by Alibaba’s AI chip developments. This move represents Beijing’s strongest push to reduce reliance on U.S. technology amid Nvidia’s export restrictions. With Alibaba’s stock seeing hefty gains, this further complicates the competitive dynamics for U.S. companies.

On the commodities front, gold prices rose as demand for safe-haven assets increased, closing at $3,501.60 per ounce. This upward movement reflects ongoing concerns about inflation and Fed independence risks. Conversely, crude oil prices slipped to $64.09 per barrel, indicating a potential overall softening in commodities amid growing global supply challenges.

### Political Challenges Impacting Market Sentiment

Political turmoil has also introduced additional uncertainty in the market. Notably, the legal disputes surrounding Federal Reserve officials, particularly involving Governor Lisa Cook and former President Trump, have created an atmosphere of instability leading up to crucial FOMC meetings. Such developments can impact investor sentiment and market dynamics heading into key monetary policy discussions.

### Conclusion

In summary, the stock market is currently navigating through a multitude of pressures stemming from inflation data, consumer sentiment, corporate performance, and geopolitical dynamics. The ongoing concerns regarding persistent inflation and its potential implications for Federal Reserve policy underscore the complexities facing investors. While some sectors and companies demonstrate resilience, the broader market remains fragile as it heads into historically challenging periods. Investors are encouraged to remain vigilant and adaptable in their strategies as these narratives unfold in the near future.

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