Traders work on the floor of the New York Stock Exchange (NYSE) on February 7, 2024 in New York City, USA.
Brendan McDiarmid | Reuters
Stock prices fell on Tuesday because Nvidia It led a broad tech sell-off ahead of semiconductor makers' earnings reports.
of Dow Jones Industrial Average It fell 64.19 points (0.17%) to settle at 38,563.80.of S&P500 It fell 0.60% to close at 4,975.51.of NASDAQ Composite Index with high technology ratio It fell 0.92% to close at 15,630.78.
shares of NvidiaEarnings are scheduled to be released after the bell on Wednesday, but the stock fell nearly 4.4%. Nvidia is expected to deliver impressive results, but investors have expressed concerns about its inflated valuation. Amazon stock fell 1.4%, but microsoft and meta Each lost about 0.3%.
“The technology industry is currently trading at close to 30 times forward estimates, which seems to be the upper limit for the tech sector,” said Sam Stovall, chief investment strategist at CFRA Research. It's becoming quite difficult.” “What investors will have to wait for is for profits to beat expectations and forecasts for 2024 and 2025 to finally improve.”
So far this year, the technology sector has increased 6%, making it the third-highest gainer in the overall market, beaten out by communications services and health care. Nvidia continues its massive rally, with him up 40% so far this year, while its “Magnificent 7” peers are up.Meta and Amazon They are about 33% and 10% ahead in 2024, respectively.
Financial stocks were also in the spotlight Tuesday following the blockbuster announcement that Capital One Financial agreed to acquire Discover Financial Services in an all-stock deal worth $35.3 billion. The transaction is expected to close in late 2024 or early 2025. capital one Added 0.1% after the announcement. Discover It rose by 12.6%.
In other deal news, Walmart announced it would buy TV maker Vizio for $2.3 billion, or $11.50 per share, sending Vizio's stock price up about 16%. Walmart shares rose more than 3%, buoyed by double-digit growth in global e-commerce sales and as the big retailer also beat quarterly profit and sales estimates.
The move follows a weak week on Wall Street as economic data heightened concerns that the Federal Reserve would not start cutting interest rates as quickly as market participants expected this year. It became a movement.
Tuesday begins an abbreviated trading week after U.S. markets were closed on Monday for George Washington's birthday.
