The New York Stock Exchange (NYSE) saw a turbulent day of trading on Monday, with the Nasdaq Composite experiencing its worst day since April. Stock futures were flat in overnight trading, with the Dow Jones Industrial Average adding 10 points and the S&P 500 and Nasdaq-100 hovering near the flatline.
During the regular session, the Dow Jones Industrial Average managed to buck the selloff trend, adding nearly 261 points. However, the S&P 500 dropped 0.31% and the Nasdaq Composite shed 1.09% as investors rotated out of semiconductors.
Semiconductor stocks took a hit, with Nvidia sinking nearly 7% and other related companies like Super Micro Devices, Qualcomm, and Broadcom also experiencing declines. The information technology sector was the worst-performing sector in the broad index, dropping 2.1%.
Despite the recent selloff in semiconductors, some analysts remain optimistic about the long-term outlook. Jeff deGraaf from Renaissance Macro Research noted that the summer is typically a tough time for the sector, but believes that corrections in stocks like Nvidia may present buying opportunities.
Looking ahead, Wall Street is anticipating earnings reports from FedEx and Carnival on Tuesday, as well as key economic data releases throughout the week. Investors will be keeping a close eye on consumer confidence, the Richmond Fed Index, and home price data, leading up to Friday’s release of the personal consumption expenditures price index for May.
