Traders and floor officials react to technical problems on the floor of the New York Stock Exchange (NYSE) in New York City, US, June 3, 2024.
Brendan McDermid | Reuters
At Dow Jones Industrial Average climbed there as investors sold big technology names in favor of other sectors such as banks and energy.
At Dow advanced 328 points, or 0.8%. At S&P 500 added 0.3%, while tech-heavy Nasdaq Composite down 0.3%.
Information technology was the only negative sector for the day, down 0.8%. Meanwhile, energy, financials and utilities were all up more than 1%. Dow members JPMorgan Chase, Goldman Sachs and Chevron rose more than 1%.
Nvidia fell 5%, increasing to 4% The decline last week was surprising eight-week winning streak. The withdrawal comes after Nvidia quickly dethroned Microsoft as the most valuable company in the US Chart analysts also indicated a bearish pattern in Nvidia’s recent trading.
Despite the selloff, the stock is still up about 150% for the year, making it the second best performer in the S&P 500.
The pullback in Nvidia is “pretty healthy,” according to Larry Tentarelli, chief technical strategist at Blue Chip Daily Trend Report.
“Last week and today, we’re seeing a healthy rotation. It’s actually a very nice break in technology, and a rotation back into some of the other sectors that have been lagging behind,” Tentarelli said.
Enthusiasm around artificial intelligence has lifted the market significantly this year even as investors grappled with changing expectations for rate cuts and a slowing economy. The S&P 500 has advanced nearly 15% this year after closing at a record 31.
Investors will receive key inflation data this week in the form of May’s personal consumption expenditure data. The Federal Reserve’s preferred inflation gauge is set to be released on Friday.
Stocks are coming off record-setting weeks, with the S&P 500 and Nasdaq hitting all-time highs as Wall Street heads into the final week of June and the end of the first half of 2024.
