Stocks fell Thursday, with theDow Jones Industrial Average registering its worst day of 2024, as a post-earnings rally inNvidiafailed to lift the broader market.
The 30-stock Dow slid 605.78 points, or 1.53% for its worst session of the year.Boeingwas the biggest laggard in the Dow, falling 7.5%. TheS&P 500dropped 0.74%, and theNasdaq Compositetumbled 0.39% after both indexes reached record highs earlier in the day.
Chipmaker and artificial intelligence darling Nvidia surged 9.3%, sending shares above $1,000, after postingstronger-than-expected fiscal first-quarter resultsand announcing a10-for-1 stock split.
Fiscal second-quarter revenue guidance of about $28 billion also beat an LSEG consensus forecast of $26.61 billion — a sign the company doesn’t see its momentum slowing. For the bottom line, analysts expect a profit of $5.95 per share.
Nvidia’s results have been a focal point for Wall Street, as traders hoped for signs that the excitement around AI is not waning. With its market cap of more than $2.5 trillion, Nvidia also has considerable sway over the broadS&P 500.
However, the majority of the stocks in the broad market index turned negative Thursday, indicating a lack of market breadth. More than 400 names in the S&P 500 were lower, and information technology was the only positive sector for the day.
Stronger than expected economic data also evaporated the rally on Thursday as investors cut their odds of a rate cut in September. Services and manufacturing data for May both topped economists’ expectations, according to purchase manager surveys fromS&P Globalreleased Thursday. Labor market data also beat estimates, adding to investors’ concerns the Federal Reserve will not lower interest rates soon.
Traders are currently pricing just a 51% chance the Fed will cut rates in its September meeting, down from 58% a day ago and nearly 68% in the prior week, according to theCME FedWatch Tool.When the level falls, below 60% it’s viewed as no longer likely that the Fed will take action.
The market has “some loose footing,” Piper Sandler chief market technician Craig Johnson wrote in a Thursday note. “This market’s strange mix of leadership, combined with breakdowns in transportation stocks and mediocre breadth readings, makes us not so confident that a new leg higher will be sustained from current levels.”
This is a developing story. Please check back for updates.
Samantha Subin, CNBC
Samantha Subin is a digital news associate with CNBC.
FAQs
Dow sinks 600 points
Why did Dow drop 600 points today? ›
Dow drops more than 600 points as worries about the economy rattle Wall Street. NEW YORK (AP) — U.S. stocks tumbled Tuesday to their worst day since an early August sell-off, as a week full of updates on the economy got off to a discouragingly weak start.
Has the Dow ever dropped 1,000 points in a day? ›
The Dow Jones plunges over 1,000 points as global markets roil Stocks fell sharply across the globe on Monday, as worries about the U.S. economy triggered a worldwide sell-off.
Why did the Dow drop 900 points? ›
The Dow was recently down more than 900 points on Friday as a selloff continued. Off 2.3%, the blue-chip gauge was on track for its biggest daily drop since Sept. 13, 2022, according to Dow Jones Market Data. On that day in 2022, hotter-than-expected inflation data arrived to bulldoze stocks.
What was the worst day of the Dow Jones? ›
Some sources (including the file Highlights/Lowlights of The Dow on the Dow Jones website) show a loss of −24.39% (from 71.42 to 54.00) on December 12, 1914, placing that day atop the list of largest percentage losses.
Why are US markets falling? ›
Wall Street stocks fell sharply on Friday due to weaker-than-expected US job growth, signaling an economic slowdown. The S&P 500 dropped 1.7%, while the Nasdaq and Dow also lost ground.
What does it mean when the Dow goes up a point? ›
When you hear a stock has lost or gained X number of points, it's the same as saying the stock has lost or gained X number of dollars; one point equals one dollar. Since points represent actual dollar amounts, two stocks can rise or fall the same number of points—but register different percentage gains or losses.
Is there a market crash coming in 2024? ›
Put simply, investors sell their holdings in a bear market out of fear that stock prices will go down. No other reason is required. This is not the case in the Indian stock market today. Thus, we can conclude that as things stand at the time of writing, a bear market in 2024 doesn't seem likely.
What is the largest stock market drop in history? ›
On Monday, Oct. 19, 1987, the Dow Jones Industrial Average plunged almost 22%. It was the biggest single-day decline in stock market history. The remainder of the month wasn't much better: By the start of November 1987, most of the major stock market indexes had lost more than 20% of their value.
What's the most the stock market has dropped in a day? ›
October 19, 1987: Black Monday (-22.6%)
On October 19, 1987, a stock market crash in Hong Kong spread throughout the world, causing the Dow to fall over 22% in a single day. This historic day would be known as Black Monday and it is the most the Dow has ever declined in a single day since The Great Depression.
Records
| Category | All-time highs |
|---|
| Closing | 41,563.08 | Friday, August 30, 2024 |
| Intraday | 41,585.21 | Friday, August 30, 2024 |
The highest closing price for the Dow Jones Industrial Average (DJI) all-time was $41,198.08, on July 17.
What is the biggest gain for a stock ever? ›
During yesterday's trading, NVIDIA's market value jumped by a whopping $277 billion, a record-breaking achievement. So far this year, their total gains have reached an impressive $740 billion, bringing their overall market capitalization close to $2 trillion.
What month is historically the worst for the stock market? ›
In fact, since these indices were first established, September has earned a reputation for being a historically weak month for returns. Going back to 1928, the S&P 500 has declined an average 1.2% in September, the weakest month of the year for stocks.
What was the biggest one day fall in the Dow Jones? ›
The statistic shows the worst days of the Dow Jones Industrial Average index from 1897 to 2023. The worst day in the history of the index was October 19 1987, when the index value decreased by 22.61 percent.
What is the best month for the Dow Jones? ›
NYSE Composite Seasonal Patterns
- Best Months: April, July, October, November, and December.
- Worst Months: January, February, June, August, September.
On Black Tuesday (October 29) more than 16 million shares were traded. The Dow lost another 12 percent and closed at 198—a drop of 183 points in less than two months. Prime securities tumbled like the issues of bogus gold mines. General Electric fell from 396 on September 3 to 210 on October 29.
How many points was the Dow today? ›
Major Stock Indexes
| Key U.S. | Last | Chg |
|---|
| Dow Jones Industrial Average | 41,393.78 | 297.01 |
| NASDAQ Composite Index | 17,683.98 | 114.30 |
| S&P 500 Index | 5,626.02 | 30.26 |
| Russell 2000 Index | 2,182.49 | 53.06 |
The E-mini Dow index futures contracts are standardized exchange-traded contracts that represent the value of 30 of the largest stocks traded in the US. The value for a 1 point move in the standard contract is $5 or $. 50 for the 1/10 size micro contract.
Is the Dow Jones in points or dollars? ›
The average and its movements are annotated in points, with each point representing a dollar. The result of the calculation is the Dow Jones Industrial Average (DJIA) "close" for that day. For example, on Dec. 11, 2020, the Dow closed at 30,046.37, up 47.11 ($47.11) from the previous day, or +0.16%.
