US markets remain unaffected by strong Nvidia earnings

US stocks faced a significant downturn on Thursday, with the Dow Jones Industrial Average experiencing its worst performance of 2024. The Dow dropped by 1.53 per cent, closing at 39,065.26, marking its lowest session of the year. Boeing was the biggest drag on the Dow, plummeting by 7.6 per cent. The S&P 500 also fell by 0.74 per cent, settling at 5,267.84, while the Nasdaq Composite dropped by 0.39 per cent, concluding at 16,736.03.

Despite the overall market decline, Nvidia, a leading chipmaker and artificial intelligence company, saw a surge of 9.3 per cent, pushing its shares above $1,000. This boost came after Nvidia reported strong fiscal first-quarter results and announced a 10-for-1 stock split. The company’s fiscal second-quarter revenue projection of approximately $28 billion exceeded expectations, indicating continued momentum.

However, the broader market sentiment remained negative, with over 400 stocks in the S&P 500 registering declines. The information technology sector was the only one to post gains for the day. Stronger-than-expected economic data also contributed to the market downturn, as investors reassessed the likelihood of a rate cut in September.

Traders are now pricing in just a 51 per cent probability of a rate cut at the Fed’s September meeting, down from previous expectations. In terms of sectors, all US sectors closed lower except for Tech, which saw a 0.6 per cent increase. Consumer Discretionary was the worst performer.

Overall, the market faced challenges on Thursday, with concerns about interest rates and mixed performances across different sectors contributing to the downturn.