Shares of NVIDIA Corp. fell 2.77% as the stock market experienced a poor trading session, with the S&P 500 Index dropping 0.28% and the Dow Jones Industrial Average falling 0.51%.
Stocks fell on Thursday as strong earnings from Nvidia were overshadowed by comments from the Federal Reserve signaling that interest rates will remain elevated for a long time to combat inflation.
The Dow Jones Industrial Average fell after a surprise drop in initial jobless claims, while tech stocks, such as Nvidia, saw gains due to strong earnings results.
Investors with short positions on Nvidia lost $826 million as the chipmaker's shares surged following a strong revenue forecast, resulting in total paper losses of $11.36 billion for this year.
Marvell Technology's earnings results and financial guidance were slightly above expectations, but investors were disappointed due to the stock's previous strong performance.
Investors were disappointed by Marvell Technology's lack of a beat-and-raise, but analysts still see potential in the stock due to the growth of artificial intelligence.
Chipmaker Marvell Technology exceeded Wall Street's expectations for its fiscal second quarter and provided a steady outlook for the current period, but its stock fell in after-hours trading.
Marvell Technology Group's shares fell despite surpassing Wall Street's expectations, Affirm's stock jumped after reporting strong Q4 results, Hawaiian Electric faced a 20% drop in shares due to a lawsuit, Nordstrom lost despite exceeding earnings expectations, Workday's shares rose following better-than-expected Q2 results, Intuit experienced a slight dip despite beating quarterly expectations, Ulta Beauty's stock rose after reporting positive Q2 results and raising its full-year forecast, Gap's shares gained despite mixed quarterly results, AMC Entertainment's shares rose ahead of an anticipated stock conversion, and Netflix's stock increased after a positive analyst upgrade.
Marvell Technology's fiscal second-quarter results and third-quarter guidance met expectations, with a significant increase in artificial intelligence revenue growth, but delays in recoveries for data center storage and enterprise networking businesses; overall, the company remains well positioned in data center infrastructure and is undervalued.
Investors were disappointed as early gains in stock markets reversed, with the Nasdaq Composite leading the downward trend, and stocks like Marvell Technology and Nordstrom losing ground due to their respective quarterly financial reports.
Shares of Walt Disney fell 3.9% on Thursday, closing at their lowest level in nearly nine years, as investors anticipate a further price drop due to concerns about the company's turnaround plan and weakness in the broader market.
The stock of Tesla dropped over 5% due to the launch of new hardware, but software may have been a bigger factor.
U.S. stocks fell on Tuesday, with tech stocks dragging down indexes after Apple unveiled its latest iPhone and the Justice Department's antitrust case against Google went to trial in Washington. The Nasdaq sank 1%, while the S&P 500 fell 0.6% and the Dow Jones Industrial Average closed 0.1% lower.
Intel's stock drops as analysts express skepticism about the company's ability to compete with Nvidia in artificial intelligence.
Nvidia, the semiconductor giant, has experienced a 10% decline in their stock this month, leading to a $180 billion decrease in market capitalization, attributed to the "September effect," although it remains the best performer in the S&P 500 due to the rise of AI and ChatGPT.
Tesla's stock fell 4.23% as the overall stock market experienced a rough trading session, marking the stock's third consecutive day of losses.
