The stock market has seen a significant shakeup with Nvidia recently losing an alarming $279 billion in market value in a single day. This is the fifth time that the stock has experienced a loss of over $200 billion in market cap in one day, but this latest drop is the most substantial. On Tuesday, Nvidia plummeted by 9.5%, marking a total downturn of 23.3% since June 20th. Despite these losses, Nvidia has actually seen a remarkable increase of 118% in 2024. The downward trend continued after hours with an additional 2% dip following reports of antitrust concerns from the Department of Justice.
The popular VanEck Semiconductor ETF (SMH) took a hit, falling by 7.5% on Tuesday. Its performance since July 11th shows a decrease of 20.5%. Similarly, the iShares Semiconductor ETF (SOXX) also experienced a decline of 7.6%, showcasing a 20% drop since mid-July. In the same period, Micron Technology, Advanced Micro Devices, and KLA have all seen dips of 9.5%, 9%, and 8.8% respectively. This sector has displayed considerable weakness over the past week.
Amidst the market turmoil, the SPDR S&P Dividend ETF (SDY) only fell by 0.4% on Tuesday and even reached a 52-week high earlier in the session. Despite having a relatively low dividend yield of 2.4%, the defensive nature of this ETF has allowed it to weather the storm better than other sectors. The S&P Utilities Sector showed resilience on Tuesday, remaining flat with a 3% dividend yield. Utilities sectors are often favored by investors in times of economic uncertainty due to their dependable dividends.
The SPDR S&P Homebuilders ETF (XHB) experienced a 3.4% drop on Tuesday, signaling a 6.5% decrease from its 52-week high in July. Among homebuilders, Champion Homes has emerged as a top performer with an 18% increase in the last month. Builders FirstSource and Floor & Decor also showed positive growth rates in the same period. However, TopBuild has lagged significantly, marking a 15% decrease in the past month.
The S&P Energy sector faced challenges on Tuesday, losing 2.4% and now standing 9.4% lower than its April high. APA, EOG Resources, and Halliburton were among the biggest decliners during the session. While the sector as a whole remained flat over the past month, certain companies such as Oneok and Targa saw improvements, while APA, Halliburton, and SLB experienced declines of around 6% in the same period.
As the football season kicks off, attention is turning to gambling stocks like DraftKings, Flutter, MGM Resorts, and Caesars Entertainment. These stocks have seen notable fluctuations, with DraftKings down by 22% since February, while Flutter has maintained a 3% decrease. MGM Resorts and Caesars Entertainment have also faced downturns ranging from 19% to 35% in the past few months. Keep an eye out for CNBC’s upcoming release on NFL team valuations.
This analysis highlights the volatility and performance variations across different sectors of the stock market, emphasizing the need for investors to stay informed and adaptable in navigating today’s economic landscape.
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