The latest issue of the Stocks @ Night newsletter highlighted the significant drop in market value of Nvidia, which lost $279 billion in a single day. This is not the first time Nvidia has experienced such a drastic decrease, but this recent one is the most severe. The stock plummeted by 9.5% and has seen a total decline of 23.3% since June 20. Despite these losses, Nvidia is still up by 118% in 2024. The Department of Justice’s investigation into antitrust concerns for Nvidia has further contributed to this downward trend.
The VanEck Semiconductor ETF (SMH) and iShares Semiconductor ETF (SOXX) also faced a challenging day, with both dropping significantly. SMH fell by 7.5% and is down 20.5% since July 11, while SOXX was down 7.6% and has seen a 20% decline since July 11. Other major players in the semiconductor industry, such as Micron Technology and Advanced Micro Devices, have also experienced losses in the past five sessions.
Despite the overall negative market performance, the S&P Utilities Sector managed to finish flat on Tuesday. The sector pays a respectable 3% dividend, making it an attractive option for investors, especially when interest rates are low. While the sector’s Relative Strength Index of 71 may suggest it is overbought to some traders, the recent performance of top companies like NRG Energy, PG&E, and Constellation Energy indicates otherwise.
The SPDR S&P Homebuilders ETF (XHB) experienced a 3.4% decline on Tuesday, signaling a downward trend in the real estate market. Despite the recent drop, certain companies like Champion Homes, Builders FirstSource, and Floor & Decor have managed to perform well in the past month. However, companies like TopBuild have seen a significant decrease in their stock value over the same period.
The S&P Energy sector had a tough day on Tuesday, losing 2.4% as a whole. Companies like APA, EOG Resources, and Halliburton were among the biggest losers in the session. However, some outliers like Oneok and Targa have managed to see gains in the past month. Overall, the energy sector has remained relatively flat during this time period.
As the football season kicks off, gambling stocks are also attracting attention. Companies like DraftKings, Flutter, MGM Resorts, and Caesars Entertainment have seen fluctuations in their stock prices over the past few months. With the release of an awaited list of NFL team valuations on CNBC’s “Squawk Box,” investors in this sector can expect volatility in the coming days.
The retail sector, specifically represented by Dollar General and Dollar Tree, has faced challenges recently. Dollar General’s shares plummeted after poor financial results, with Dollar Tree also experiencing a significant drop in stock value. These companies are grappling with both short-term losses and long-term declines from previous highs.
The analysis of the Stocks @ Night newsletter provides valuable insights into the current market trends and performances of various sectors. Investors need to stay informed and adapt their strategies based on the ever-changing dynamics of the stock market.