Stock market today: S&P 500, Nasdaq pull back from records as Nvidia tumbles
Published On Dec 9, 2024, 4:00 PM
US stocks experienced a pullback due to a decline in Nvidia shares as Chinese authorities initiated an antitrust investigation. The broader market dipped, with the Dow Jones down 0.5%, S&P 500 down 0.6%, and Nasdaq down 0.6%. This decline follows a successful recent period for stocks, and investors are now focused on an upcoming consumer inflation report, which is significant for the Federal Reserve's interest rate decisions. Notably, US-listed Chinese stocks surged after Beijing hinted at monetary policy easing, with Alibaba and XPeng seeing significant gains.
Stock Forecasts
NVDA
Negative
Nvidia (NVDA) is facing headwinds from the antitrust probe which could impact its operations and perception in the market, leading to bearish sentiment. Given the current uncertainties, it may struggle in the short to medium term.
BABA
Positive
The bullish response of US-listed Chinese stocks, particularly Alibaba (BABA) and XPeng (XPEV), to Beijing's loosening fiscal policy implies a positive outlook for the sector. As investors react to anticipated measures aimed at stimulating the economy, these stocks could see further gains.
XLF
Negative
The overall market is experiencing turbulence which could be exacerbated if inflation figures come in higher than expected, potentially leading to rate hikes. In this case, sectors sensitive to interest rates, like financials and utilities, might see declines.
TSLA
Positive
Tesla (TSLA) has recently reached a 52-week high amid positive sentiment and strong performance in the market, primarily driven by its favorable position with the incoming administration. The momentum may continue in the near term as investors remain bullish on its growth prospects.
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