Stock market today: Asian stocks follow Wall Street rise, but Nvidia tumbles again as AI mania cools (2024)

HONG KONG (AP) — Asian stocks rose Tuesday after another slide for Wall Street heavyweight Nvidia kept U.S. indexes mixed Monday, even as the majority of stocks rallied.

U.S. futures were higher while oil prices were little changed.

Japan’s benchmark Nikkei 225 added 0.5% to 39,001.39 after data from the Bank of Japan Tuesday showed the services producer price index in May was up 2.5% compared to the same period last year, a slowdown from the 2.7% increase seen in April.

The Japanese yen remains a focus of attention, with the US dollar to Japanese yen exchange rate still trading near its weakest level in approximately 34 years. The yen rose to 159.37 to the dollar in Tuesday morning trading. The dollar closed at 159.59 yen on Monday.

The Hang Seng in Hong Kong was 0.5% higher to 18,121.78 and the Shanghai Composite index dipped 0.3% to 2,954.51.

Australia’s S&P/ASX 200 gained 0.9% to 7,799.20. In South Korea, the Kospi climbed 0.5% to 2,777.69.

Elsewhere, Taiwan’s Taiex lost 0.3%, while the SET in Bangkok edged 0.1% higher.

The S&P 500 slipped 0.3% to 5,447.87. The drops for Nvidia and other winners of Wall Street’s artificial intelligence boom pulled the Nasdaq composite down 1.1% to 17,496.82, while the Dow Jones Industrial Average rose 0.7% to 39,411.21.

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Stocks of oil and gas companies were among the market’s strongest, as seven out of every 10 stocks in the S&P 500 rose. Exxon Mobil climbed 3%, and oilfield services provider SLB gained 4% as oil prices hung near their highest levels since April.

Financial companies were also strong. JPMorgan Chase added 1.3%, and Wells Fargo climbed 1.6% ahead of results coming later in the week for tests by the Federal Reserve of how big banks would fare in a recession.

But declines for a handful of high-profile stocks offset all of those gains, and the spotlight shone brightest on Nvidia’s 6.7% tumble. It was a third straight drop for the chip company, which had rocketed 1,000% higher since the autumn of 2022.

The nearly insatiable demand for Nvidia’s chips to power artificial intelligence applications has been a big reason for the U.S. stock market’s record runs recently, even as the economy’s growth slows under the weight of high interest rates. But the AI boom has been so frenzied that it’s raised worries about a possible bubble in the stock market and too-high expectations among investors.

Markets are moving again toward records. Here’s more from AP business correspondent Seth Sutel.

Nvidia’s stock has been receding since it briefly overtook Microsoft as Wall Street’s most valuable last week, and it’s down nearly 13% in just three days. Because Nvidia has become so massive in size, the movements for its stock carry extra weight on the S&P 500 and other indexes. It was the heaviest weight by far on the S&P 500 Monday.

Other AI beneficiaries also gave up some of their fantastic gains. Super Micro Computer dropped 8.6% to shave its gain for the year so far back below 200%, down to 190.9%.

Such a rotation among stocks could be a healthy sign for the market, as long as it can stay close to its records. Market watchers have been worried to see just Nvidia and a handful of other companies responsible for much of the S&P 500’s returns recently. They would prefer a market where many stocks are participating in the gains.

In the bond market, Treasury yields eased a bit. The yield on the 10-year Treasury fell to 4.23% from 4.26% late Friday.

It’s been mostly falling since topping 4.70% in late April, which has relaxed the pressure on the stock market. Yields have sunk on hopes that inflation is slowing enough to convince the Federal Reserve to cut its main interest rate later this year.

The Fed has been keeping the federal funds rate at the highest level in more than 20 years, hoping to grind down on the economy just enough to get inflation under control.

In other dealings Tuesday, U.S. benchmark crude oil gave up 1 cent to $81.62 per barrel in electronic trading on the New York Mercantile Exchange.

Brent crude lost 2 cents to $85.13 per barrel.

The euro rose to $1.0736 from $1.0732.

Stock market today: Asian stocks follow Wall Street rise, but Nvidia tumbles again as AI mania cools (2024)

FAQs

Why is Nvidia sinking? ›

Nvidia stock is losing ground in conjunction with recent earnings reports from two of the world's biggest and most influential companies. Alphabet and Tesla each issued second-quarter results and guidance yesterday, and the reports kicked off a substantial pullback across the stock market.

Why is Nvidia dropping today? ›

Shares of leading designer of graphics chips Nvidia (NASDAQ:NVDA) fell 6.1% in the morning session after Bloomberg reported that the Biden Administration is planning to implement tighter trade restrictions if semiconductor companies continue granting China access to technologies made in the United States.

What is the Asian stock market doing right now? ›

Stock Indexes
SYMBOLPRICECHANGE
*SHANGHAI2,877.36+26.7
*NIKKEI36,726.64+284.21
*HSI17,109.14-4.22
*SHENZHEN8,370.12+59.12
10 more rows

Is Nvidia stock a buy? ›

New Street Research calls Nvidia a buy

The research firm noted the stock had fallen 26% from its June peak, underperforming peers that are also competing in data center AI. It sees the sell-off as a buying opportunity and gave the AI stock a price target of $120, implying upside potential of 15%.

Will Nvidia ever bounce back? ›

However, Nvidia always eventually bounced back after a major decline. Given enough time, the stock has a 100% rebound rate historically.

Should I hold or sell Nvidia? ›

Based on analyst ratings, Nvidia's 12-month average price target is $144.17. Nvidia has 43.31% upside potential, based on the analysts' average price target. Nvidia has a consensus rating of Strong Buy which is based on 37 buy ratings, 4 hold ratings and 0 sell ratings.

What is the stock prediction for Nvidia in 2025? ›

For 2025, Arcuri forecast Nvidia will generate revenue of $204 billion and earnings per share of $4.95. That compares with consensus estimates of revenue of around $157 billion and earnings of $3.57 a share, according to FactSet.

Which are the best stocks to invest in 2024? ›

Best stocks in 2024
S.No.NameCMP Rs.
1.Man Infra189.35
2.BLS Internat.391.85
3.Black Box548.00
4.RHI Magnesita598.10
22 more rows

What is the stock price forecast for Nvidia in 2024? ›

The forecasted Nvidia price at the end of 2024 is $139 - and the year to year change +198%. The rise from today to year-end: +30%. In the first half of 2025, the Nvidia price will climb to $168; in the second half, the price would add $50 and close the year at $218, which is +103% to the current price.

Why invest in Asia now? ›

1. Positive Regional Growth Outlook - The region has become wealthier, stronger economically, and more self-reliant. Asia has been, and is expected to remain, the major regional contributor to global growth.

What is the biggest Asian Stock Exchange? ›

As of March 2024, the Japan Exchange Group had the largest domestic market capitalization among stock exchanges in Asia Pacific, amounting to nearly seven trillion U.S. dollars. Second in the ranking was the Shanghai Stock Exchange Group, followed by the Shenzhen Stock Exchange.

How high will NVDA go? ›

Analysts are expecting the company's earnings to increase at an annual rate of 43% for the next five years. Based on its fiscal 2024 earnings of $1.21 per share, Nvidia's bottom line could jump to $7.24 per share after five years.

What is the fair value of Nvidia stock? ›

He added that he had halved his position in the stock in the summer of 2023 and was doing so again. Damodaran built a model to value all the so-called "Magnificent Seven" stocks. He calculated the fair value of Nvidia was $436.34 per share.

Where to invest in Nvidia stock? ›

Robinhood gives you the tools you need to put your money in motion. You can buy or sell NVIDIA and other ETFs, options, and stocks.

Why is Nvidia doing poorly? ›

NVIDIA Corp. faced a triple-hit to its stock price this week, including a correction, proposed acquisition delay, and shipment delays to top customers. Patient investors have an opportunity to buy NVDA stock with three catalysts still in play: R&D profile, operational efficiency, and human capital structure.

Why does Nvidia drop? ›

Geopolitical tensions are dragging down some of the tech sector's biggest names today, including Nvidia (NASDAQ:NVDA). Some statements from Donald Trump have cast doubt over the future of companies within the semiconductor manufacturing space, such as Taiwan Semiconductor Manufacturing (NYSE:TSM) and NVDA stock.

Why is Nvidia plunging? ›

Nvidia shares fall 6% following a report that the company's upcoming artificial intelligence chips will be delayed due to design flaws. Apple sinks 4.8% after Berkshire Hathaway reported on Saturday that it had slashed its stake in the company by almost 50% as part of a massive second-quarter selling spree.

Is it too late to buy Nvidia? ›

Is Nvidia still a buy in 2024? While some analysts expect a 'dip,' which has at least in part been born out in recent days when Microsoft reemerged as the world's most valuable company, the long-term outlook on Nvidia remains bullish.

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