Finance

Nasdaq Takes a Hit as Nvidia and Chip Stocks Plunge – What You Need to Know!

2024-10-15

Author: Chun

In a tumultuous trading session on Tuesday, U.S. stocks dipped as investors reacted swiftly to disappointing earnings from ASML Holding, one of the world’s leading semiconductor suppliers. The unexpected early release of ASML's earnings report showcased a bleak sales outlook for 2025, causing a massive sell-off in chip-related shares. ASML's stock plunged over 15%, sending shockwaves across the semiconductor sector.

Nvidia, the renowned graphics processing giant, was not spared from the fallout. Its shares fell approximately 5%, retreating from recent highs that had investors buzzing with optimism. Advanced Micro Devices (AMD) followed suit, experiencing a similar decline of around 5%. This downturn reflects a growing concern among investors about the sustainability of growth in the tech sector.

The broader market felt the impact as well. The Dow Jones Industrial Average dropped by about 0.8%, equivalent to a loss of over 300 points, following its historic close above 43,000 just days earlier. UnitedHealth Group was a significant contributor to this decline, with its shares tumbling roughly 8% after the company provided disappointing profit guidance for 2025.

The S&P 500 also sank around 0.8%, retreating from the all-time highs achieved just days prior, while the tech-heavy Nasdaq Composite experienced a sharper decline of about 1%. Investor sentiment remains cautious as they digest these mixed earnings reports.

In contrast, reports from major banks offered a glimmer of hope amidst the turbulence. Goldman Sachs announced a staggering 45% increase in third-quarter profits year-over-year, driven by robust activity in deal-making. Similarly, Bank of America exceeded earnings expectations, buoyed by its strong investment banking performance. These contrasting results illustrate the volatility and unpredictability of the current earnings season.

Amidst these market shifts, Walgreens Boots Alliance emerged as a surprising winner, with shares climbing around 15%. This surge followed the announcement of its plan to close 1,200 stores over three years in a bold move aimed at restructuring and revitalizing the company.

As explosive changes unfold in the stock market, investors are left wondering what lies ahead! Could we anticipate more surprises in this earnings season? Only time will tell—stay tuned for updates!