Dow hits another record, S&P 500, Nasdaq waver, Nvidia drop shrugged off
Published On Aug 29, 2024, 4:09 PM
The Dow Jones Industrial Average reached a new all-time high, gaining over 200 points, amidst mixed performance in the broader market. The Nasdaq dropped slightly, and the S&P 500 ended flat as investors reacted to Nvidia's disappointing earnings report despite strong quarterly profit and revenue figures. Nvidia's stock fell by about 6%, stirring concerns about the peak of AI growth. In contrast, Salesforce and Best Buy reported positive earnings, with Salesforce's stock increasing significantly after a strong earnings beat, and Best Buy's shares rising 17% on better-than-expected results. Conversely, Dollar General saw its stock plummet more than 30% after lowering its full-year outlook due to weak sales driven by cash-strapped consumers. The US economy's Q2 growth exceeded expectations at 3%, and jobless claims fell, causing speculation about potential interest rate cuts by the Federal Reserve.
Stock Forecasts
NVDA
Negative
Despite the recent dip, Nvidia remains a major player in AI technologies. However, caution is warranted due to concerns about slowing growth and high expectations. The stock may continue to face downward pressure as investors adjust their forecasts.
CRM
Positive
Salesforce's strong earnings and plans to monetize its new AI products present a positive outlook. The company is well-positioned to capitalize on growing demand for AI solutions.
BBY
Positive
Best Buy's substantial improvement in earnings amidst a stabilizing market conditions indicates resilience in consumer electronics retail. This trend could continue as consumers seek value and high-tech products.
DG
Negative
Dollar General's drastic decline illustrates the risks that consumer-facing, lower-price retailers face amid economic pressures. This situation may further deter investors until clearer growth signals emerge.
SPY
Positive
With the US GDP growth surpassing projections, investor sentiment might improve, though ongoing economic uncertainty and potential interest rate adjustments from the Fed could present challenges ahead.
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