Dow Jones Dips, Nasdaq Higher on Tech Stock Resilience

The stock market’s bullish momentum has slowed, with the Dow Jones declining after four consecutive record-setting days. This dip signals fatigue in the market, even as the S&P 500 consolidated its gains following new highs set yesterday. In contrast, the Nasdaq continued to rise, bolstered by strong performance in the tech sector, particularly from Nvidia.

Dow Jones Daily Chart – Sipping Below $42,000

Geopolitical Tensions and Global Economic Concerns

Today’s risk sentiment turned negative following reports that Israel is preparing for a ground invasion of Lebanon, contributing to declines in crude oil prices and foreign currencies. Despite this, U.S. stock markets had mixed results, with the Nasdaq posting gains while the Dow fell, and the S&P 500 remained largely unchanged. Additionally, investors are expressing dissatisfaction with China’s failure to follow its recent monetary actions with significant fiscal stimulus, further dampening market optimism.

Tech Sector Shows Mixed Signals

The IT industry displayed a mixed performance today. Nvidia led the market with a 3% increase, reflecting investor confidence in semiconductors and AI technology. However, Apple saw a 1% decline, showing that not all tech stocks are benefitting from the same level of investor enthusiasm. This divergence in the tech sector highlights the varying degrees of confidence in different areas of the industry.

• Dow Jones Drops: The Dow ended its four-day record streak, closing down -293.47 points at 41,914.75.
• S&P 500 Decline: The S&P 500 also lost ground, falling -10.67 points to settle at 5,722.26, breaking its two-day record streak.
• NASDAQ Slight Gain: The NASDAQ managed a small increase of +7.68 points, closing at 18,082.21.
• Russell 2000 Falls Sharply: The Russell 2000 took the largest hit, dropping -26.54 points to finish at 2,197.45.
• Micron Earnings Beat: After the market closed, Micron reported better-than-expected earnings:
  • EPS: $0.18 (vs. $1.14 estimate)
  • Revenue: $7.75 billion (vs. $7.64 billion estimate)
• Micron Stock Surge: In response, Micron shares surged 10%, reaching $105

Nasdaq Index Live Chart