Just as the S&P 500 index attempted to break down early in Friday’s session, it was attempting to break out above the top of last week’s range but failed. The primary reason is lower Q2 revenue guidance from chip maker Nvidia Corp (NASDAQ: NVDA).
Although the index did shrug off the news early in the session and make a new high for the rebound, the overall precarious state of the market was too much to overcome. As a result, the index surrendered all of the premarket gains and actually went red for the session after being in the green by over 40 handles at the early morning peak.
While the closing price of 4141.75, which is lower by 5 handles, the place where it resides is more significant. With that closing price, the index has now had four consecutive closes within a narrow 15-handle range (4141.75-4156.25). Investors will have to wait at least one more day to find out if the bear market rally has more legs or it is ready to resume its move lower.
Not all tech was a wreck as Meta Platforms Inc. (NASDAQ: META) was the biggest gainer of the top components of the index. For the session, the issue advanced by $3.14 or 1.9% to close at $170.25.
That was much better than the cash index’s decline of 0.12%.
By far, the biggest loser of the top components of the index was Nvidia Corp (NASDAQ: NVDA). Following a seven-day winning streak, the issue is now on a two-day losing streak after its lower Q2 revenue guidance. For the session, the issue declined by $11.96 or 6.3% to close at $177.93.
PreMarket Prep Stock Of The Day: Nvidia Corp (NASDAQ: NVDA)
Investors were blindsided by a steep reduction in Q2 revenue guidance. Read more on NVDA here.