On Thursday, stocks initially traded higher following strong earnings from Nvidia and an announced ten-for-one stock split. The S&P 500 and Nasdaq Composite reached new all-time intraday highs before economic data turned the market around. Both indices ended the day lower, with the Nasdaq down 0.4% and the S&P 500 falling by 0.7%. Despite the market’s overall decline, Nvidia managed to hold on to most of its gains, closing up over 9% at almost $1038. The company’s stock split announcement further fueled investor enthusiasm.
The morning’s Manufacturing Purchasing Managers Index (PMI) and Services PMI came in stronger than expected, following minutes from the Federal Reserve Open Market Committee meeting that hinted at a longer period of higher rates. While the market didn’t react positively to these comments, they aligned with Fed Chair Jerome Powell’s stance on data-driven rate decisions. In premarket trading, markets largely shrugged off the stronger-than-expected Durable Goods print. Despite the market reversal, Nvidia’s strong performance stood out, while GameStop and Boeing saw significant losses.
Boeing’s woes continued as the company’s stock fell 7.5% to close at $172.21. Negative cash flows and a recent incident involving a Boeing 777 added to the aerospace company’s challenges. Live Nation Entertainment also faced challenges as the Department of Justice announced a lawsuit against the company for violating antitrust laws, resulting in an almost 8% decline in Live Nation stock. Amid these developments, the Securities and Exchange Commission (SEC) approved an ETF for trading crypto product ether, marking a positive development for the cryptocurrency market.
The approval of the ether ETF, despite previous opposition from the SEC, could have a significant impact on the cryptocurrency market. Ether is the second largest cryptocurrency after bitcoin, and bitcoin ETFs have brought in $30 billion since their launch. The market value for ether is lower than bitcoin, so the impact on prices remains to be seen. Looking ahead, traders will monitor the effects of economic data and market trends following Thursday’s decline. While selling was orderly, volume dried up as traders may have flattened out positions before the long weekend.
As trading volume is expected to slow down during the day, investors are advised to stick with their long-term objectives and investing plans. Amidst market fluctuations and economic indicators, it is important to remember the sacrifices made by those who served our country and their families. Despite political divisions, the shared values and freedoms defended by those who served should be honored and remembered. This article serves as educational content and not as trading or investment advice, providing insights into the market developments and trends shaping investor decisions.
