Before the market opens
S&P 500 $SPY: -4.6%
Netflix $NFLX: -4.9%
Microsoft $MSFT: -6.1%
Nasdaq 100 $QQQ: -6.3%
Google $GOOGL: -6.5%$META: -9.5%
Amazon $AMZN: -9.7%
Apple $AAPL: -9.8%
Tesla $TSLA: -10.9%
Nvidia $NVDA: -13.7%
Bitcoin $IBIT: -19.2%$VIX: 65 (+179%)
10-Year Yield: 3.67%— Charlie Bilello (@charliebilello) August 5, 2024
This morning, the stock market confronted a sharp decline, with Dow Jones futures dropping 1,300 points and other major indices also seeing heavy losses. Nvidia’s stock took a hit of nearly 13% after the company revealed to crucial clients, including Microsoft, that the release of its Blackwell B200 AI chips would be postponed due to an unexpectedly discovered design issue during production. Other technology firms also experienced significant sell-offs.
% Below 52-Week Peak (10 Largest US Firms)…
Berkshire Hathaway $BRKB: -5%
Apple $AAPL: -7%
Meta $META: -10%
Microsoft $MSFT: -13%
Google $GOOGL: -13%
Amazon $AMZN: -17%
Eli Lilly $LLY: -17%
Broadcom $AVGO: -22%
Nvidia $NVDA: -24%
Tesla $TSLA: -26%— Charlie Bilello (@charliebilello) August 4, 2024
Tesla shares saw a decrease of over 9% in premarket trading, while Microsoft dropped nearly 5%, Amazon fell more than 8%, and Apple sank by over 9%. This decline followed reports that Warren Buffett’s Berkshire Hathaway had slashed its holdings in Apple by 49.4%. The overall market grappled with significant strains as well, with both the Invesco QQQ Trust and SPDR S&P 500 ETF showing pre-market decreases of 5.5% and 4%, respectively.
Nasdaq 100 is now in correction territory. Down 11.4% since the last peak! pic.twitter.com/q7V1f4mUNQ
— Holger Zschaepitz (@Schuldensuehner) August 2, 2024
The price of Bitcoin dropped by over 17%, nearing $50,000, and shares of Coinbase Global fell more than 16% in pre-market trading. This week’s economic calendar offers minimal data for investors to scrutinize.
Market upheaval impacts tech giants
Market Alert | Nvidia falls 8.8%, Apple drops 6.6% during global sell-off in pre-market trading#Nvidia #Apple #USMarkets pic.twitter.com/0mNIrH5Jrt
— ET NOW (@ETNOWlive) August 5, 2024
According to FactSet, the Institute for Supply Management’s service sector activity index, releasing Monday at 10 a.m. ET, is anticipated to reflect a return to expansion at 51. This week also promises several crucial earnings reports, including ones from Palantir Technologies, Uber Technologies, Caterpillar, and Novo Nordisk. Last Friday, the Dow Jones Industrial Average fell by 1.5%, the S&P 500 dropped 1.8%, and the Nasdaq composite tumbled 2.4%.
The small-cap Russell 2000 index saw a downturn of 3.5%. Analysts examined the current trading landscape and potential strategies for investors to steer through the ongoing market fluctuations. A number of stocks are positioned in or near buying zones in today’s market, though many encountered steep drops during premarket trading.
The continuing market instability highlights various economic and financial challenges, ranging from substantial leverage in currency trades to disappointing corporate earnings, leading to a widespread sell-off across global markets. Investors are urged to remain vigilant and adjust their strategies in accordance with the changing market landscape.
