Nvidia made headlines recently with a significant drop in market value on Tuesday. Losing $279 billion in a single day is a big deal, even for a powerhouse like Nvidia. This marked the fifth time the stock has experienced such a massive loss, but Tuesday’s plunge set a new record. The stock plummeted by 9.5% and is now down by 23.3% since June 20. Despite this recent setback, Nvidia has seen an impressive 118% increase in 2024. However, the stock continued to slide by another 2% after hours, following reports of the Department of Justice investigating antitrust concerns.
Semiconductor ETFs Take a Hit
The popular VanEck Semiconductor ETF (SMH) and the iShares Semiconductor ETF (SOXX) both faced declines on Tuesday, falling 7.5% and 7.6% respectively. Both ETFs are down by 20.5% since July 11. While Nvidia stole the spotlight as the weakest component, other semiconductor companies like Micron Technology and Advanced Micro Devices also experienced losses. Micron Technology dropped by 9.5% in five sessions, while Advanced Micro Devices fell by 9% in the same period. Additionally, KLA saw an 8.8% decrease in five sessions.
In contrast to the semiconductor industry, the SPDR S&P Dividend ETF (SDY) only fell by 0.4% on Tuesday and actually hit a 52-week high earlier in the session. Despite its minor setback, the ETF boasts a dividend yield of 2.4% as of Tuesday night. The S&P Utilities Sector remained flat on Tuesday after hitting a new 52-week high earlier in the day. Offering a 3% dividend yield, the sector tends to attract investors when interest rates are low. Looking back to March 2022, the utilities sector has enjoyed a 7% increase as interest rates began to rise.
On the housing front, the SPDR S&P Homebuilders ETF (XHB) experienced a 3.4% decline on Tuesday, bringing it 6.5% away from its July 31st 52-week high. Champion Homes emerged as the top performer in the last month, with an 18% increase. Builders FirstSource followed closely, up by about 11% in a month. Flooring and decor company, Floor & Decor, claimed the third spot with a 10.3% gain in the same period. However, TopBuild found itself at the bottom of the pack, suffering a 15% decrease in a month. Several other companies like Advanced Drainage and Williams-Sonoma are also down between 5% and 10% in the past month.
Energy Sector Struggles
The S&P Energy sector experienced a 2.4% drop on Tuesday, bringing it 9.4% below the April high. Companies like APA, EOG Resources, and Halliburton were among the top decliners, with APA taking the biggest hit at 6%. While the sector remained flat over the past month, certain companies like Oneok and Targa saw a 15% increase in that time frame. On the other hand, APA, Halliburton, and SLB were the laggards, each experiencing a 6% decrease in a month.
With a mix of ups and downs in various sectors, the stock market proves to be a volatile environment. Keeping a close eye on these fluctuations can help investors make informed decisions and navigate the shifting landscape of the financial world.