S&P 500 Gives Up Gains as Nvidia Drags Down Tech

S&P 500 Gives Up Gains as Nvidia Drags Down Tech

S&P 500 Gives Up Gains as Nvidia Drags Down Tech

By Yasin Ebrahim

Investing.com — The S&P 500 gave up gains Monday, following an Nvidia-led slump in tech after the chipmaker cut its guidance.

The S&P 500 fell 0.19%, the Dow Jones Industrial Average rose 0.1%, or 19 points, and the Nasdaq was down 0.23%.

Nvidia Corporation (NASDAQ:NVDA) fell more than 8% after the chipmaker reported second-quarter revenue of $6.7 billion, well below its estimates of $8.1 billion, give or take 2%, as a challenging macroeconomic environment that is expected to continue in Q3 dented revenue in its gaming business.

“While bad news on the gaming front was anticipated, we see this result as somewhat worse than expected,” Wedbush said, forecasting Nvidia to deliver earnings per share of $0.50 to $0.52 a share in Q2, compared with a prior consensus of $1.26. The chipmaker reports quarterly results on Aug. 24.

The warning on performance from Nvidia weighed on sentiment in the broader chip sector, with Marvell Technology (NASDAQ:MRVL), Lam Research (NASDAQ:LRCX) and Taiwan Semiconductor Manufacturing (NYSE:TSM) among the decliners.

Big tech, meanwhile, was mostly lower, though Meta Platforms (NASDAQ:META) bucked the trend rising more than 2%.  

Palantir Technologies (NYSE:PLTR), meanwhile, slumped more than 13% after reporting an unexpected loss of 1 cent per share in the second quarter.

Energy was up more than 1%  to stifle losses in the broader market after oil prices cut losses shrugging off ongoing recession fears and slowing China crude imports that point to softer demand.

Consumer discretionary stocks, up 1%, driven by a rise in Tesla and airline stocks.

Tesla (NASDAQ:TSLA) added 1% to also lift consumer stocks as sentiment on electric vehicles was boosted by the new climate bill, which was passed over the weekend in the Senate and includes nearly $400 billion over a 10-year period to fund climate and energy-related programs and an extension as well as improvement to existing EV tax credits.

In deal news, Global Blood Therapeutics (NASDAQ:GBT) rallied 4% after the blood disorder drugmaker accepted Pfizer’s $5.4 billion, or $68.50 per share in cash, takeover offer.

Signify Health (NYSE:SGFY) jumped more than 11% on reports that CVS Health Corp (NYSE:CVS) is weighing a bid for the health services company, The Wall Street Journal reported, citing unnamed sources.

In other news, investor appetite for so-called meme stocks returned as Bed Bath & Beyond (NASDAQ:BBBY) and AMC Entertainment (NYSE:AMC) surged.

Boeing Co (NYSE:BA) jumped more than 1% after Federal Aviation Administration said Monday that the aircraft maker is expected to resume deliveries of its Dreamliners in the coming days.