Nvidia experienced a significant blow on Tuesday, losing $279 billion in market value in a single day. This marks the fifth time the stock has lost over $200 billion in market cap in a single day. The stock plummeted 9.5% and is now down 23.3% since June 20. Despite these losses, Nvidia has seen a significant 118% increase in value for the year 2024.
After hours, the stock continued to slide, dropping an additional 2%. This decline comes following reports that the Department of Justice is investigating antitrust concerns related to Nvidia.
The VanEck Semiconductor ETF (SMH) took a major hit on Tuesday, falling 7.5%. Since July 11, the ETF has dropped 20.5%. Similarly, the iShares Semiconductor ETF (SOXX) saw a 7.6% decrease and is down 20% since July 11. While Nvidia has been the weakest performer in the past week, Micron Technology, Advanced Micro Devices, and KLA have also experienced declines in the range of 8.8% to 9.5% over five sessions.
Utilities Sector Performance
In contrast to the semiconductor sector, the S&P Utilities Sector held up relatively well on Tuesday, finishing flat. The sector pays a 3% dividend, which can be attractive to investors when interest rates are low. Despite hitting a new 52-week high, some traders may view the sector as overbought, as indicated by the Relative Strength Index of 71.
Among the top performers in the utilities sector in the last month are NRG Energy, PG&E, and Constellation Energy, while American Water Works and AES have seen declines.
The SPDR S&P Homebuilders ETF (XHB) dropped 3.4% on Tuesday, bringing it 6.5% below the July 31 52-week high. Champion Homes, Builders FirstSource, and Floor & Decor are among the top performers in the past month, while TopBuild has experienced a significant drop of around 15%. The housing sector continues to face challenges despite some positive performances within specific companies.
The S&P Energy sector saw a decline of 2.4% on Tuesday, bringing it 9.4% below the April high. APA, EOG Resources, and Halliburton were among the biggest decliners in the sector. While some companies like Oneok and Targa have seen gains in the past month, others like APA, Halliburton, and SLB have experienced drops of around 6%.
Gambling Stocks Amid Football Season
As the football season kicks off, gambling stocks like DraftKings, Flutter, MGM Resorts, and Caesars Entertainment have seen fluctuations. DraftKings is down 22% since February, while MGM is down 25% from the April high. CNBC will release a list of NFL team valuations on Thursday’s “Squawk Box,” offering insights into the sports betting market.
The market continues to see volatility across various sectors, with some companies experiencing significant losses while others manage to stay resilient. Investors should closely monitor trends and developments to make informed decisions in a dynamic market environment.