Stock market today: Dow, S&P 500 jump after Nvidia earnings, while Alphabet tumbles

Published On Nov 21, 2024, 4:19 PM

US stocks saw a mixed performance as investors digested Nvidia's strong earnings report, which was overshadowed by Alphabet's stock plunge due to the Department of Justice's proposed breakup of Google. Nvidia, while reporting better-than-expected profits, indicated challenges ahead with revenue growth slowing due to supply chain issues. Meanwhile, jobless claims fell, suggesting a stable job market and influencing Federal Reserve expectations regarding interest rates. Bitcoin approached $100,000 amid optimism for pro-crypto policies from the incoming Trump administration, contributing to its 40% surge since the election.

Stock Forecasts

Nvidia reported strong earnings but cautioned about slowing future revenue growth due to supply chain issues impacting new product deliveries. Despite this, many analysts remain optimistic about Nvidia's prospects owing to a lack of significant competitors in the AI chip market. This mixed outlook means cautious trading moving forward.

Alphabet's significant drop due to potential DOJ actions is likely to continue pressuring its share price as investors assess regulatory risks. The proposed breakup could lead to uncertainty in its business model. Long-term prospects may still remain strong, but short-term trading may be negative.

MicroStrategy's stock price suffered a sharp decline after being targeted by a short-seller, indicating volatility due to market speculation and detachment from Bitcoin fundamentals. Given the recent surge in its stock price disconnected from Bitcoin price movements, there might be more short-term pain ahead.

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