One stock does not make a market, either on the upside or the downside. Unfortunately, investors fell prey to the Wall Street hype that somehow NVIDIA Corp’s (NASDAQ: NVDA) Q2 report was going to be the market’s savior.
It seemed that way until the opening bell of the regular session, when reality set in. NVIDIA Corp’s massive Q2 beat, raised guidance and $25B share repurchase program, or more broadly AI, is not going to cure all that ails this market.
The barrage of selling from the 9:30 AM EST open did not let up until it was saved by the closing bell. As a result, all of Wednesday’s ill-gotten gains were erased and then some.
The closing print of 4386 was lower by 61 handles for the session, and more alarming was that’s nearly 100 handles off the premarket high (4485.50).
Whether it is during tonight’s premarket action, Friday’s session or sometime next week, the bulls need to make a stand at last week’s low of 4350. If not, the index could only be in an early state of its recent decline.
Among the top components of the index, Johnson & Johnson Inc. (NYSE: JNJ) was the biggest winner. The issue reversed its role from Wednesday when it was the biggest loser and rebounded by $0.50 or 0.3% at the closing price of $165.09.
That was over two percent better than the cash index’ decline of 1.35%.
In contrast, Amazon.com Inc. (NASDAQ: AMZN) was the biggest loser of the top components of the index. The issue fell victim to the tech wreck that blitzed the market and declined by $3.68 or 2.9%.