Snatching defeat from the jaws of victory in the US stock market

The US stock indices are snatching defeat from the jaws of victory.

The Dow – from the start – did not really react positively to the better-than-expected Nvidia earnings after the close yesterday.

However, the S&P index and the NASDAQ index did move to new record highs earlier today, until stronger than expected S&P/Global PMI sent yields higher. Stocks started to erode its gains. The S&P moved negative. Later the Nasdaq followed suit, and before long the markets snatched defeat from the jaws of victory.

An alternative headline might be “Concerns of inflation > Nvidia earnings”

At the closing bell:

• The Dow industrial average fell -608.79 points or -1.53% at 39065.25
• S&P index fell -39.17 points or -0.74% at 5267.85
• NASDAQ index fell -65.51 points or -0.39% at 16736.03.

The interest rate-sensitive Russell 2000 index fell -33.30 points or -1.60% at 2048.40.

Looking at the US yields, the 2-year note rose 5.7 basis points to 4.935%. The 10-year yield rose 4.5 basis points to 4.478%. The two-year yield is up 10.8 basis points this week.

Despite the declines, Nvidia still held onto and then closed up $8.49 or 9.32% at $1037.99. That is a record close.

Over some of the other major large-cap stocks did not fare as well:

• Meta Platforms, -0.43%
• Amazon -1.14%
• Super Micro Computers -2.96%
• Alphabet, -1.60%
• Microsoft, -0.82%
• Tesla -3.54%
• Netflix -0.75%
• AMD, -3.08%
• Snowflake -5.36%

Most of these stocks were trading in positive territory at some point today.

This article was written by Greg Michalowski at www.forexlive.com.