Stock market today: Stocks fall even as inflation measure slows
Stock market today: Stocks fall even as inflation measure slows
Stock Market Downturn Amid Mixed Economic Signals
Nasdaq's Significant Drop
The Nasdaq Composite experienced a notable decrease of 1.6%, significantly impacted by a sell-off in major tech companies like Nvidia, Microsoft, and Amazon.
Modest Gains for Dow Jones
Contrasting the broader market, the Dow Jones Industrial Average saw a slight increase of 0.2%, showing resilience despite recent losses.
Inflation Data Impact
The core Personal Consumption Expenditures price index, a key inflation measure, rose by 0.2% in April, indicating a slowdown from March but still presenting persistent price increases.
Corporate Performance Variances
Corporate earnings showed mixed results; Dell faced a sharp decline in its stock due to underwhelming AI server sales, while Gap enjoyed a surge following a strong earnings report.
What was the reaction of investors to Nvidia's stock price surpassing $1,100?
Investors in Nvidia took a breather after the company's stock price rose above $1,100. Shares fell more than 2% on Friday as investors took profits on the chip producer following the surge in its stock price. This pullback came amidst a broader tech sell-off, with other tech giants such as Microsoft and Amazon also experiencing a decline in their share prices.
What specific factors contributed to the Nasdaq Composite's 1.6% decline?
The Nasdaq Composite's 1.6% decline was primarily driven by a sell-off in the technology sector. Investors pulled back from major tech stocks that have significantly contributed to the market's growth this year. Notably, Nvidia's stock price, which had recently risen above $1,100, fell by more than 2% as investors took profits. Other tech giants, such as Microsoft and Amazon, also experienced share price declines of more than 2%. This sector-wide sell-off led to the tech-heavy Nasdaq Composite index taking the biggest hit, decreasing by 1.6%.