So, stocks are taking a nosedive today. The Dow lost 700 points, Nasdaq tanked 3%, and the S&P 500 dropped by 2.24%. The culprit? A dire warning from Nvidia and some tariff concerns from Fed Chair Jerome Powell.
Nvidia’s in hot water after saying they’ll take a $5.5 billion charge for exporting chips to China without Uncle Sam’s permission. The story goes that Trump’s admin is eyeing DeepSeek, a Chinese startup Nvidia supplies, so the stock’s in the dumps. But it’s not alone. Other chipmakers like AMD and Micron are feeling the heat too. ASML didn’t help either with a crummy earnings report.
Zachary Hill at Horizon Investments says the S&P 500 is now super tech-heavy. It’s like a seesaw, man. Goes up, must come down. Powell’s tariff chatter just made things messier.
The fear gauge is up again. VIX rose above 34 after falling for three straight days. Energy’s the only sector up today, thanks to U.S. sanctions against Iran. Energy stocks like Exxon are getting a boost.
Meanwhile, the Nasdaq is flirting with bear market territory. Down 19% from its peak, it’s a rough day for tech. And Morgan Stanley’s slashing Microsoft’s price target. Ouch.
But hey, small caps are a little sunnier, still up for the week. And the Cleveland Fed’s Hammack is talking rate cuts. Getting ready to play the waiting game, I guess.
Oppenheimer’s calling Reddit a good bet. Guess they see something we don’t.
United Airlines is soaring after strong earnings, but J.B. Hunt’s getting the cold shoulder despite beating expectations. The market’s fickle like that.
Oh, and Travelers is killing it with earnings that blew past forecasts.
So, buckle up, folks. The markets are in for a wild ride. Who knows what tomorrow will bring.
