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Nasdaq Drop Led by Major Tesla Decline

The Nasdaq Composite index fell by 0.13% on opening Thursday, headlined by a steep decline from Tesla(TSLA).

By far the biggest falloff came from Tesla, which fell 9.28% after Ford announced price cuts. Many of Tesla’s competitors are increasing production and outpacing the electric car company, resulting in declining share price for Thursday.

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Super Micro Computer Inc. (SMCI) fell significantly as well on Thursday, by 4.95%. The company is not suffering from any negative sales reports or company scandal. It is simply experiencing the effects of gravity on its previously soaring stocks. Because the price shot up so quickly last year (about 700%), it is inevitable that the momentum would run out and the market would correct this stock.

Nvidia’s Impressive Gains

What helped keep the Nasdaq Composite from falling too much was the 13% increase from Nvidia(NVDA). The computer chip manufacturer had positive sales and guidance news to report, and they are expecting a great year.

Nvidia is profiting off the burgeoning AI market, as their chips help to power a variety of artificial intelligence technologies. This emerging market is steamrolling over much of the remainder of the tech industry, and Nvidia is benefiting from it in a big way. We expect this stock to stay strong and to continue to see surges like this all year long.

Nvidia has grown considerably in the last year, and it is now ranked fifth in US businesses when compared based on market capitalization. The company did very well in the last quarter and is expecting major growth for 2024. There may be some price correction coming down the pipeline for Nvidia, but do not expect that to be significant.

Nasdaq lost more than 1% for the week but could bounce back on Thursday after three straight days of losses.

 

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ABOUT THE AUTHOR See More
Timothy St. John
Timothy St. John
Financial Writer - European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.
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