After Monday’s sharp decline, markets regained some stability on Tuesday, ending a three-week $6.4 trillion decline in global stocks.
Nvidia (NVDA) rebounded in pre-market trading on Tuesday, rising more than 2%. Tesla (TSLA) also showed a recovery, rising from a 4% drop the day before.
Despite these gains, Nvidia stock fell more than 6% on Monday as Mag7 shares had their valuation wiped out by more than $650 billion in Monday’s market selloff.
This iconic group has lost approximately $1.3 trillion in market capitalization over the past three trading sessions.
Fellow Magnificent stocks Alphabet (GOOGL, GOOG) fell 4%, and Meta (META) fell more than 2%.
E-commerce giant Amazon (AMZN) and software maker Microsoft (MSFT) also fell.
Apart from the overall market decline, news from individual companies also put pressure on Mag7 stock.
A judge on Monday found that Alphabet’s Google search and advertising businesses violated antitrust laws, sending the tech giant’s stock price down during the session.
Apple (AAPL) fell more than 4% after Berkshire Hathaway (BRK-B) revealed over the weekend that it had cut its stake in the iPhone maker by half.
Nvidia fell as much as 13% on the open market to cushion some of its losses. Analysts said recent negative factors are weighing on AI chips.
The Information reported that the launch of the company’s upcoming next-generation AI chip has been delayed by three months, potentially impacting its biggest customers including Microsoft, Alphabet, and Meta.
“NVIDIA has a window to sell to Microsoft, Amazon, Google, and Meta, but these companies are anxious and anxious to build out data centers as quickly as possible. That window will close at some point,” Davidson said. said Gil Luria, Senior Software Prosecutor. analysts told Yahoo Finance on Monday.
“If Nvidia misses out on some of its revenue during that period, that would impact Nvidia’s value,” the analyst said.
Monday’s action follows a sharp decline in semiconductor stocks on Wall Street last week.
Nvidia stock fell more than 5% on Monday as the broader market fell. (AP Photo/Jeff Chiu, File) (ASSOCIATED PRESS)
On Friday, Nvidia closed just 1.8% lower at its lowest point in trading, while Intel (INTC) stock plummeted more than 26% after a disastrous second-quarter earnings report, leading to a sharp decline in chip stocks. The tech sector led the decline.
The Nasdaq Composite Index (^IXIC) is down 10% from its recent high after July employment data showed that job growth slowed last month and the unemployment rate reached its highest level in nearly three years. We have slipped into the defined adjustment area.
Ines Ferre is a senior business reporter at Yahoo Finance. Follow her on X @ines_ferre.
StockStory aims to help individual investors beat the market.
