The stock market took a major hit as Nvidia plummeted, losing a staggering $279 billion in market value in a single day. This marked the fifth time the stock had lost over $200 billion in market cap in a single day, with Tuesday’s drop reaching unprecedented levels. Nvidia’s stock price fell by 9.5% and has seen a 23.3% decline since June 20. Despite this, the stock has still managed to display an impressive 118% growth in 2024.
In the wake of Nvidia’s downfall, popular semiconductor ETFs such as VanEck Semiconductor (SMH) and iShares Semiconductor (SOXX) also experienced significant drops. SMH fell by 7.5% on Tuesday and is now down 20.5% since July 11. Similarly, SOXX saw a 7.6% decline and is currently 20% below its July 11 levels.
Utilities Sector Holds Steady
While the semiconductor sector faced losses, the utilities sector managed to hold steady. The SPDR S&P Dividend ETF (SDY) fell by only 0.4% on Tuesday, reaching a 52-week high early in the session. The sector offers a 3% dividend yield, making it an attractive option for some investors.
The real estate sector saw a shakeup as mortgage applications increased slightly and interest rates remained at around 6.5%. However, the SPDR S&P Homebuilders ETF (XHB) fell by 3.4% on Tuesday, signaling potential challenges in the housing market. Some top performers in the sector include Champion Homes, Builders FirstSource, and Floor & Decor, all of which have shown positive growth in the past month.
The energy sector experienced declines as well, with the S&P Energy sector losing 2.4% on Tuesday. Some major players such as APA, EOG Resources, and Halliburton saw drops in their stock prices, contributing to the overall decline in the sector. Despite this, companies like Oneok and Targa managed to show gains of 15% in the past month.
Gambling stocks are also under scrutiny as the football season approaches. Companies like DraftKings, Flutter, MGM Resorts, and Caesars Entertainment have all seen fluctuations in their stock prices in recent months. As the industry gears up for the first game of the season, there is much anticipation surrounding the performance of these companies in the coming weeks.
Retail Giants Feel the Pressure
Retail giants like Dollar General and Dollar Tree have faced challenges in the market, with Dollar General’s stock plummeting by 33% after issuing its earnings report. Dollar Tree also experienced a decline, falling by 14% in just one week. These companies are navigating a volatile market landscape as consumer spending patterns continue to shift.
The market roundup showcases the dynamic nature of the stock market, with various sectors experiencing both gains and losses in response to changing economic conditions. Investors must remain vigilant and adaptable in order to navigate these fluctuations successfully.