Selling pressure intensified in the stock market towards the end of Wednesday’s trading session, erasing gains from the previous two days. Nvidia saw its earlier gains disappear, while its partner Super Micro Computer also struggled on the market.
After posting a 1% gain on Tuesday, the Nasdaq composite ended Wednesday down 1.1%, falling even lower than where it stood after Monday’s sell-off. The index remains below key moving averages, indicating potential weakness. Similarly, the S&P 500 managed to retain a portion of Tuesday’s gain but still closed Wednesday 0.7% lower, staying below its 50-day moving average.
The Dow Jones Industrial Average also declined by 0.6%, encountering resistance at its 50-day moving average. The small-cap Russell 2000 index experienced a significant setback, dropping 1.2% after an unsuccessful comeback attempt.
Market volume was higher on the Nasdaq but lower on the NYSE compared to the same time on Tuesday. Meanwhile, the bond market saw the 10-year Treasury yield rise by seven basis points to 3.96%. Crude oil prices also increased to $75.40 a barrel.
Various stocks moved in response to earnings reports and market conditions. For example, Nvidia reversed lower by 4.3%, while Super Micro Computer plummeted over 18% after missing earnings and sales estimates for the fourth quarter. On the other hand, Exelixis surged more than 12% following strong second-quarter results and raised revenue guidance.
Palantir Technologies, Clear Secure, and Globus Medical were some of the stocks that experienced notable movements in response to market conditions and company-specific news.
Overall, the market still faces challenges in maintaining a sustained rally, with recent reversals indicating ongoing volatility. Investors need to closely monitor market dynamics and individual stock performance to navigate these uncertain times effectively.
