Stock Market Falls as Winning Streak Ends
Stocks have fallen for the most part as the week closes off, but it could just be a minor misstep for the bull run.
Quick overview
- All three major stock indices fell on Thursday, with the Dow Jones down 0.52%, the Nasdaq down 0.08%, and the S&P 500 down 0.28%.
- Despite the decline, the S&P 500 and Nasdaq are expected to finish the week positively, while the Dow may not.
- Nvidia was a standout performer, increasing by 1.46% on Thursday, amidst concerns about a potential market bubble.
- Experts, including Nvidia's CEO, remain optimistic about the AI market's growth potential, dismissing fears of a bubble burst.
All three major stock market indices trended down on Thursday as trading closed off for the day, with the Dow Jones falling 0.52%, the Nasdaq dipping 0.08%, and the S&P 500 down 0.28%.
Three leading indices fell Thursday as the market ended its winning streak. The market is still near record highs, but this is either the beginning of the bubble bursting or just a minor blip on the path to greater gains. Market conditions have not changed considerably since earlier in the week, even with the government shutdown continuing.
The value of the U.S. dollar is in decline, however, and it appears as though market traders are engaging in debasement trade. There is growing concern about the devaluing of the dollar, but the crypto and stock markets are growing, and there is increased trade in the metals market as well.
A Look at the Stock Market’s Performance
All three top indices trended higher and higher throughout the week, and it was only on Thursday that they showed signs of slowing down. The Nasdaq and S&P 500 have been easily outpacing the Dow, with tech stocks leading the market rally for now.
It looks like the S&P 500 and the Nasdaq will end the week in the green overall, but the Dow Jones may not. Tech stocks trended lower as trading closed off Thursday, with Microsoft (MSFT) down 0.47% and Apple (AAPL) losing 1.57%. Nvidia (NVDA) was one of the few top tech stocks that seemed immune to the downturn, with an increase of 1.46% by end of trade Thursday and then a more modest 0.46% increase in premarket trading for Friday.
We may see the market close down on Friday as the bullish run slows, but most of the top performing stocks should still be in the green by the time the week finishes. That includes Delta (DLA), which saw significant stock growth this week after it beat the earnings expectations for its most recent quarter.
The idea that the stock market is in a bubble that is ready to burst does not sit well with Nvidia’s CEO Jensen Huang. He says that this kind of talk is misguided, and he is very optimistic about the economy and the state of the stock market. He and other market insiders and analysts say that the AI market is one that will pay off for those who have been making the big investment. This is a market with tremendous growth potential rather than a fad, according to these experts, and they believe that AI will not be the cause of any stock market bubble bursting.
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