Stock market today: Tech leads losses as investors await Nvidia earnings

Published On Aug 28, 2024, 2:31 PM

Tech stocks saw a decline largely due to the anticipation surrounding Nvidia's earnings report, which was crucial for market confidence. Despite Nvidia beating earnings and revenue estimates, its shares fell by about 6% in after-hours trading. Other tech stocks also suffered losses, with notable declines in SuperMicro Computer's shares following its announcement of a delayed annual report. In the retail sector, Abercrombie & Fitch and Foot Locker experienced double-digit declines, driven by concerns about a challenging retail environment. Meanwhile, Salesforce's shares rose over 2% after it exceeded expectations for earnings and revenue. The overall market, including the Dow Jones and S&P 500, decreased as investors reacted to these developments and upcoming economic indicators.

Stock Forecasts

Nvidia's strong quarterly performance, despite the stock drop, indicates robust long-term growth potential in AI and computing sectors. The short-term dip may present an entry point for long-term investors as the company continues to dominate the AI chip market.

SuperMicro Computer's drastic drop following the allegations of accounting manipulations and delayed report suggests a risky environment for investors. Confidence in the stock is undermined, leading to a negative outlook in the short term due to potential further investigations.

Salesforce's strong earnings performance and raised outlook reflect a healthy demand for its services, indicating a positive trajectory for the stock. It presents an attractive investment opportunity as it strengthens its market position.

The negative outlooks expressed by Abercrombie & Fitch and Foot Locker regarding the retail environment signal turbulence in the retail sector. This trend could continue to hinder stock performance, suggesting a bearish outlook.

Kohl's ability to raise its profit outlook despite a difficult consumer environment indicates resilience. However, cautious guidance on same-store sales suggests moderate risk, making it a more neutral investment opportunity for those looking for stability.

Related News

Laffer Tengler CEO and CIO Nancy Tengler discusses investment opportunities and more on ‘Making Money.'

AAPL
MSFT
NVDA

Super Micro Computer stock continued its wild ride Wednesday as investors bet on the company's role in the AI boom. The stock remains volatile as investors weigh its AI-fueled growth against heightened regulatory scrutiny.

Nvidia stock is aiming to notch a new all-time high, as the AI boom shows no sign of slowdown.