The stock market has been on a rollercoaster ride lately, with some major players experiencing significant loss. Nvidia, for example, lost a whopping $279 billion in market value in a single day, marking the fifth time the stock has taken such a hit. With a 9.5% drop on Tuesday alone, Nvidia is now down 23.3% since June 20, although it has seen a significant 118% increase in 2024. The news of the Department of Justice looking into antitrust concerns is only adding fuel to the fire, with the stock dropping an additional 2% after hours.
The VanEck Semiconductor ETF (SMH) and the iShares Semiconductor ETF (SOXX) both saw a significant decline on Tuesday, falling 7.5% and 7.6% respectively. While Nvidia has been the weakest performer in the past week, other major players like Micron Technology, Advanced Micro Devices, and KLA have also experienced losses ranging from 8.8% to 9.5% in five sessions.
Amidst the chaos, the utilities sector managed to hold up relatively well, with the SPDR S&P Dividend ETF (SDY) only falling 0.4% on Tuesday and hitting a 52-week high early in the session. The S&P Utilities Sector finished flat for the day, paying a 3% dividend at the close. As investors seek stability in times of uncertainty, the utilities sector has seen a 7% increase since March 2022, with some top performers like NRG Energy and PG&E seeing double-digit gains in the last month.
The real estate sector has been facing headwinds, with mortgage applications up slightly but interest rates hovering around 6.5%. The SPDR S&P Homebuilders ETF (XHB) fell 3.4% on Tuesday, signaling potential challenges ahead. While some companies like Champion Homes and Builders FirstSource have seen modest gains in the last month, others like TopBuild are down roughly 15%. The uncertainty in the real estate market is something to keep an eye on in the coming months.
The S&P Energy sector had a rough day on Tuesday, losing 2.4% with major players like APA, EOG Resources, and Halliburton down 4% to 6%. Despite a flat performance in the last month, some companies like Oneok and Targa have seen 15% gains, while others like APA, Halliburton, and SLB are down about 6%. The energy sector is facing challenges as the market continues to fluctuate.
As the football season kicks off, gambling stocks like DraftKings and Flutter are facing downward pressure, with significant percentage decreases since their highs earlier in the year. With the unveiling of a list of how much NFL teams are worth on Thursday’s “Squawk Box,” the gambling sector is bound to see more action in the coming days.
Retailers like Dollar General and Dollar Tree have been facing challenges, with Dollar General shares tanking after last week’s results. While Dollar General managed a slight rebound on Tuesday, the stock is still down about 33% in a week, while Dollar Tree is 45% from its March high. The retail sector is one to watch as consumer spending patterns continue to shift.
The stock market is a tumultuous place right now, with various sectors experiencing both gains and losses. Investors need to stay vigilant and informed to navigate the market successfully in these uncertain times.