Nvidia stock plummets, fueling worst week for US markets since October 2022
Worst Week for US Stock Markets Since October 2022
Nvidia's 10% Drop Contributes to Market Decline
Nvidia Corp.'s stock price plunged by 10% on Friday, contributing to a dismal week for US stock markets. The Nasdaq Composite lost 3.3%, the S&P 500 dropped 2.4%, and the Dow Jones Industrial Average declined 2.1%. This marked the worst weekly performance for US markets since October 2022.
Nvidia's stock drop erased $41.8 billion from the company's market value, which is equivalent to its one-day increase two years ago. The decline brought the stock into correction territory, defined as a 10% decline from a recent high. Nvidia's stock has been a market darling in recent times, posting strong gains. However, its recent performance has been volatile.
The decline in Nvidia's stock contributed to a broader selloff in technology stocks, which have been hit by concerns over rising interest rates and a potential economic slowdown. The so-called "Magnificent Seven" stocks, which include Apple, Alphabet, Amazon, Meta, Microsoft, Nvidia, and Tesla, lost a collective $950 billion in market capitalization this week.
The market selloff is expected to continue as investors remain cautious about the economic outlook and the potential impact of the Federal Reserve's aggressive interest rate hikes. The Fed is raising rates to combat inflation, but the move has raised concerns about its impact on economic growth.
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