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Stock Market Today: Stocks mixed as Nvidia rebound boosts tech

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U.S. equity futures moved higher Tuesday, with tech stocks leading the early advance, as investors looked to rebound from the Nasdaq’s biggest single-day decline in more than two months.

Stocks ended lower on the Monday session, with Nvidia  (NVDA)  extending its three-day decline to around 13%, as investors took profits from high-flying chip stocks heading into the final months of a solid second quarter. 

Related: Nvidia stock pullback has markets on edge for S&P 500 correction

The Dow Jones Industrial Average, meanwhile, ended 260 points to the upside, and it’s highest level in a month, as investors rotated to industrial and financial names as they exited some of the bigger tech and chip stocks.

Much of that interplay is likely to be repeated over the coming days, as portfolios are ‘window dressed’ into the close of the quarter to best reflect performance over the past three months, as investors continue to focus on a key inflation reading Friday to close out the week. 

Tuesday’s trading focus is likely to fall on Nvidia, which has lost more than $430 billion in value over the past three trading sessions, to determine whether its recent correction will have broader implications for the current record-setting rally.

Nvidia’s extended slump, which has loped $430 billion from its market value, pulled the Nasdaq to its worst day in two months on Monday.

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In the bond market, investors will eye the results of a $69 billion auction of new 2-year notes later in the session, as well as another slate of Federal Reserve speakers including Governor Lisa Cook.

Benchmark 10-year note yields were last seen little-changed at 4.226% with 2-year notes pegged at 4.738%.

The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.02% higher at 105.497 as the yen continues to test the 160 mark in overnight currency trading. 

On Wall Street, futures contacts tied to the S&P 500 suggest an opening bell gain of around 13 points, with the Nasdaq called 95 points higher thank in part to early gains for Nvidia, Micron Technology  (MU)  and Apple  (AAPL) .

Related: Analysts revisit Micron stock price targets ahead of Q3 earnings

Nvidia shares were last marked 3% higher in premarket trading to indicate an opening bell price of $121.75 each. 

The Dow, meanwhile, is set for a modest 20 point pullback with Microsoft  (MSFT)  down 0.32% after European regulators said the tech giant is breaching antitrust rules by packaging its Teams ap with its Office software.

More Economic Analysis:

  • Stocks’ record setting rally may be on fumes
  • Consumers tapping out amid sticky inflation and slowing job market
  • Fed rate-cut timing shifts after retail sales data

In Europe, stocks were drifting lower following last night’s selling on Wall Street, with the Stoxx 600 marked 0.32% to the downside and Britain’s FTSE 100 sliding 0.18% in early London trading.

Overnight in Asia, the follow-on from Wall Street pulled the regional MSCI ex-Japan benchmark 0.4% lower into the close of trading, while the weakening yen gave more support to the Nikkei, which closed 0.95% higher in Tokyo.

Related: Veteran fund manager picks favorite stocks for 2024


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