US stock market: Nasdaq outperforms as Nvidia shares rebound; Wall Street stocks see mixed close

The stocks market in the United States closed mixed on Tuesday, with Nvidia shares rebounding and ending a three-day losing streak that had taken many investors by surprise and wiped out more than $400 billion in market value.

The Dow Jones Industrial Average fell 0.8 per cent to 39,112.16, while the broad-based S&P 500 rose 0.4 per cent to 5,469.30. The tech-heavy Nasdaq Composite Index outperformed other major indices on Wall Street, closing up 1.3 per cent at 17,717.65.

Market movers

Nvidia reversed its recent decline, finishing the day 6.8 per cent higher and boosting the Nasdaq index. Other tech stocks, including Alphabet and Meta Platforms, also saw solid gains.

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Cruise line operators Carnival and Norwegian Cruise Line Holdings rose 8.7 per cent and 5.1 per cent, respectively.

Home Depot shares shed 3.5 per cent, while Walmart’s stock dropped 2 per cent after the company’s CFO described the second quarter as the “most challenging quarter” at an investor conference in London.

George Cipolloni, portfolio manager at Penn Mutual Asset Management, told Reuters, “The markets are an exact reversal of what happened yesterday. We had seen some hope because value stocks had started to do better, with energy and financial names outperforming tech. Today, we’re seeing a complete reversal of that. This year has been dominated by growth stocks, and today’s market action reflects that trend.”

Eye on Data

Investors also digested consumer confidence data published on Tuesday, which showed that US consumers have become slightly less optimistic about the state of the economy.

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The next major data release is scheduled for Friday, when the Federal Reserve’s preferred inflation gauge is published. “All eyes are on the inflation data,” Spartan Capital Securities chief economist Peter Cardillo told AFP.

Economists surveyed by Dow Jones Newswires and The Wall Street Journal expect a slight decline in the annual rate of price increases.

With inputs from agencies