Dow jumps 200 pts, Nasdaq slumps as Nvidia struggles
Published On Aug 26, 2024, 10:54 AM
The Dow Jones Industrial Average reached a record close at 41,240.52, while the S&P 500 and Nasdaq Composite fell due to underperformance in tech stocks. Nvidia's upcoming earnings report on Wednesday is pivotal for the market, as it could influence the AI sector and overall market sentiment. With the Federal Reserve signaling readiness for interest rate cuts, investors are keenly focused on economic indicators that will dictate the extent of these cuts. Additionally, rising oil prices and geopolitical tensions are adding to market volatility.
Stock Forecasts
NVDA
Negative
Nvidia's earnings report is highly anticipated, and if results do not meet expectations, this could lead to a decline in tech stocks broadly, including Nvidia itself. A failure to meet expectations may also negatively affect broader market sentiment, particularly for AI-related stocks, which have been strong performers thus far.
XLE
Positive
Given the rising tensions in the Middle East and production issues in Libya causing oil price increases, energy stocks may benefit in the short term as prices rise. This situation presents an opportunity for investment in energy-related ETFs and stocks.
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