Dow closes at record high, Nvidia falls after forecast

Dow closes at record high, Nvidia falls after forecast

By Johann M Cherian and Noel Randewich

Thu August 29, 2024 6:56 PM

Despite all the gloom and doom prognostication that has been plaguing the tech sector in recent days, Nvidia certainly cannot be blamed for the crash that happened this afternoon, especially in view of the fact that all three indexes were going great guns until 2 pm despite the fact that Nvidia turned in its “disappointing” report last night. All the indexes were on an upward lunge from the outset, the Dow up a whopping 500 points by 2:30 pm and the tech heavy S&P and Nasdaq were also way up. Then, at 2 pm, the whole market came very suddenly crashing down, with tech closing just mildly in the red.

There’s no mention about what happened at 2 pm but since it was mentioned yesterday that Nvidia’s report came in “after hours,” clearly this morning’s rally was just ignoring the “disappointment” as Nvidia, despite beating forecasts, did not beat it by overwhelming margins as has happened in recent quarters. And there were other positive reasons to continue the rally including tomorrow’s PCE, today’s strong consumer spending that is growing GDP and keeping us out of recession, and lower than expected jobless claims. Despite beating estimates, Nvidia fell 6%, lowering its 2024 gain to a mere 137%. Volume continues light but at 10.5 billion is getting closer to the 4-week average of 11.6 billion. 

DJ: 41,091.42  -159.08       NAS: 17,556.03  -198.79      S&P: 5,592.18  -33.62          8/28

DJ: 41,335.05  +243.63      NAS: 17,516.43  -39.60        S&P: 5,591.96  -0.22            8/29

Thu 8-29-24 6:56 pm Dow closes at record high, Nvidia falls after forecast | Reuters