Nvidia managed to outperform expectations last night, but unfortunately, it fell short of satisfying the stock market's demands today. It's widely recognized that Nvidia achieved success by surpassing expectations, but investors who closely monitor the stock might be feeling a bit disappointed with the results of the highly anticipated "exceed expectations" performance. In the late trading session yesterday, NVDA experienced a remarkable surge, surging from around $470 to about $518 to $520 before ultimately settling at around $500 at the closing bell.
The stock market today experienced an early decline that initiated shortly after the opening bell, and by midday, the price had recovered to around $480, marking a 3% increase. However, the trading level at this juncture resulted in nearly every buyer who had reacted to the news finding themselves in a loss-making position. The subsequent trading activity remained relatively flat for a duration before ultimately encountering downward pressure, culminating in a closing gain of just fifty cents.
Amidst this backdrop, the market's overall performance neared a state of equilibrium by midday, following a significant overnight futures rally. In the afternoon, the persisting underperformance of Nvidia and its related tech peers continued to cast a shadow on market sentiment, with a decline of over 1% observed. Today's market activity painted a decisively negative picture, potentially indicating challenges for the upcoming fall season. However, the market's true direction may hinge on tomorrow's developments, as we assess whether the recent Nvidia-driven rally was a last gasp of exhaustion or if the market possesses additional upside potential, contingent on the trajectory of Jay Powell's remarks at Jackson Hole.
Beyond the equities realm, the U.S. dollar exhibited increased strength, while fixed income faced some weakness. Meanwhile, the metals market displayed fluctuation before closing with mixed results, as silver recorded a 0.75% loss and gold gained a modest few dollars. In the mining sector, performance exhibited small changes, reflecting a mix of upward and downward fluctuations over the course of the trading session.
Our Live Day Trading Room experienced an exceptional day. Join our new Discord server to witness live day trading in action!