The major indexes closed with losses across the board as stocks gave back morning gains and reversed lower Thursday afternoon. The Nasdaq and S&P 500 surrendered gains after reaching new highs to join the Dow Jones Industrial Average in a sell-off. Meanwhile, Nvidia was the clear winner in the stock market today.
The Dow Jones increased its loss to 1.5% at the close, down about 600 points. The blue chip index fell to just above the 39,000 level after hitting 40,000 on Monday. The S&P 500 reversed 0.8% lower, while the Nasdaq also fell, off 0.4%. An Nvidia-related boost for AI and chip stocks faded. The small-cap Russell 2000 dropped 1.8%.
Volume rose on the Nasdaq and the New York Stock Exchange vs. the same time in Wednesday's session, according to preliminary numbers.
Among exchange traded funds, Invesco QQQ Trust fell 0.3%. The Innovator IBD 50 ETF reversed 0.1% lower.
The benchmark 10-year Treasury yield inched up to 4.48%.
Stock Market Today: Nvidia Tops 1,000
IBD 50 stock Nvidia held a good portion of its gains, up about 9% at the close, after the company smashed fiscal first quarter earnings and sales estimates. The IBD Leaderboard stock topped the 1,000 level for the first time. Shares are extended from the 5% buy zone of a handle entry at 922.20. Nvidia was the biggest gainer on the S&P 500 Thursday.
Nvidia has gained an impressive 109% this year so far. Its relative strength line reached a 52-week high on Thursday, according to MarketSurge chart analysis.
The artificial intelligence powerhouse earned an adjusted $6.12 a share on sales of $26 billion in the quarter ended April 28. That's a 461% rise in profit and a 262% jump in revenue year over year.
Nvidia's data center sales stood out, with a 427% year over year rise to $22.6 billion. The company forecast current-quarter sales of $28 billion vs. analysts' estimates of $26.62 billion.
"AI will bring significant productivity gains to nearly every industry and help companies be more cost- and energy-efficient, while expanding revenue opportunities," said Jensen Huang, CEO of Nvidia, in the earnings release. The company also announced a 10-for-1 stock split effective June 7, 2024
Dow Stocks: Boeing Worst Of The 30 Stocks
Boeing skidded more than 7% after announcing weaker cash flow. After it bled $4 billion in cash in the first quarter, the company now expects it may be cash-flow negative for the full year.
Shares undercut their downward-sloping 50-day moving average. The stock has lost around 33% year-to-date. Boeing stock was the biggest loser in the Dow Jones in the stock market today.
McDonald's fell around 3%, contributing to the Dow's drop. It fell for a sixth-straight day. The fast-food giant fell further below its 50-day line. Shares have lost 12% this year so far.
Johnson & Johnson lost more than 2% and is now trading below its 50-day line. Shares are down 4% on the year.
Outside the Dow, PDD Holdings surged around 4% in heavy volume after the company beat first quarter profit and revenue projections. The IBD 50 stock topped the 5% buy zone of a cup-with-handle base buy point of 142.32. The holding company owns China-based e-commerce platform Pinduoduo and international discount retail platform Temu.
Live Nation Entertainment plunged nearly 8% in heavy trading on news the Justice Department and more than two dozen states are suing the entertainment promoter. The antitrust suit strives to break up the Live Nation-Ticketmaster duo, claiming the combination limits competition and drives up ticket prices.
The stock sank below its 50-day line as it forms a cup base. Live Nation reported a loss of 53 cents per share in its first quarter, following a $1.22 loss per share the previous quarter.
Stock Market Today: Synopsys Stock Pops
IBD 50 component Arista Networks tumbled around 5% and retreated below the 307.74 buy point of a cup base. The data center network company fell below its 50-day moving average before trimming losses.
The stock broke out of the base shortly after the company topped first quarter adjusted earnings and revenue views on May 7. Thursday's drop now makes it a six-day losing streak.
Synopsys rose 2.3% after the chip design software developer reported fiscal second-quarter adjusted profit growth of 26% over the prior year's same quarter. But its growth slowed from 66% and 36% in the prior two periods. Its Q2 sales increased 15%, but lagged the 25% and 22% growth in the prior two quarters.
Shares topped a trendline entry around 580 and are in an undefined base with a 629.38 buy point.
Chip Stocks Rally, Then Fade
AI chipmaker Broadcom closed slightly higher but off session highs. Meanwhile, Taiwan Semiconductor Manufacturing trimmed gains to 0.2% as it rose in sympathy with Nvidia. Advanced Micro Devices reversed lower.
Super Micro Computer reversed lower around 3% in heavy volume. It undercut its 50-day line. Meanwhile, Dell Technologies trimmed gains and closed 4% higher. Both companies use Nvidia chips in their AI servers.
Ugly Market Day Despite Nvidia; Deckers Soars Late
Stock Market Today: Snowflake Stock Sinks
ELF Beauty spiked around 18% after the cosmetics company reported a surprise profit and higher sales in its fiscal fourth-quarter earnings report. But the company gave fiscal 2025 profit and revenue guidance below views. The stock reclaimed its 50-day moving average.
Snowflake slid around 5% after the data storage and analytics company reported higher-than-expected fiscal first quarter revenue but fell short on profit estimates. The stock sank below its 50-day line and failed to find support.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
