Nvidia Falls 9%, Selling in Tech Stocks Erases $2.3 Trillion From Nasdaq 100 in One Day
S&P 500 drops 4.4% and the semiconductor index has the worst drop since March 2020, in a session of widespread sales on Wall Street, according to Bloomberg Television.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM BLOOMBERG TELEVISION · 3 MIN
Wall Street closed sharply lower this Thursday, November 5, in one of the broadest selling sessions of the year. According to Bloomberg Television, the Nasdaq 100 fell 6.4%, which wiped out US$2.3 trillion in market value, and Nvidia shares fell more than 9%, with a loss of US$447 billion in value.
The movement occurred about 36 hours after the midterm elections in the United States. In the presenters' opinion, investors decided to "go sideways" after digesting the result. The S&P 500 lost more than 300 points (4.4%) and closed below 7,473 points. The Dow Jones lost around 1,800 points (3.4%), the Nasdaq Composite dropped 5.5% and the Russell 2000, 4.5%.
Semiconductors at the center of the liquidation
The Philadelphia Semiconductor Index lost more than 1,200 points, down 12.3%, the biggest since March 16, 2020, at the height of the pandemic. The broadcast highlighted that the index had already accumulated a decline of around 40% in the last three to four months and had fallen by around 3% the day before. The presenters questioned whether this movement was already a warning sign that the scenario was not as favorable as assumed.
The drop was widespread. According to Bloomberg, 429 of the S&P 500 stocks closed lower, 73 rose and one was stable. The information technology sector lost 7%, and only basic consumption and utilities offered some relative protection.
The KBW bank index had the biggest daily drop since January 2009. The presenters said they did not know for sure the relationship with data centers or what was voted on Tuesday, but pointed out that the episode shows how much investors are reevaluating positions.
Elections, data centers and what lies ahead
The broadcast linked part of the sell-off to questions about whether the expansion of data centers for artificial intelligence can be halted given Democrats' gains in the election. One of the presenters stated that it will be necessary to see what resistance will arise at the local level, although demand remains strong, according to reports she says she has heard. For her, the market narrative, dominated by AI since the launch of ChatGPT, has changed dramatically in recent weeks.
The next reference for the sector is Nvidia's quarterly balance sheet, scheduled for around 12 days from now. On Friday, the jobs report will be the next test of investor mood.
After the close, Akamai shares were down about 6% to 7%, with fourth-quarter adjusted profit guidance ($1.50 to $1.70 per share) below the $1.78 expected. Atlassian fell about 17%, and Lyft, more than 11%, after a $118 million settlement over driver classification in California. Airbnb rose close to 5%, with projected revenue above expectations, and Sweetgreen advanced around 8%. Texas Roadhouse fell about 4.5%, after the company said that store traffic lost momentum at the end of the quarter.
Automatically translated from Portuguese.
