Stock Market Update: Nvidia and AI Stocks Show Signs of Fatigue, Causing Market Wobble
Money | June 21, 2024, 10:03 a.m.
US stocks seemed to stall below the flatline Friday as a tech-driven rally showed signs of slowdown after a week of gains. The S&P 500 and Nasdaq both dipped, with the Nasdaq ending a streak of record closes. Nvidia, a key player in the AI-fueled rally, saw a significant loss, causing other chip stocks to slump. Investors are closely monitoring the US economy and potential interest rate cuts. Bank of America economists predict a stable economic outlook with the Fed set to begin interest rate cuts by December. Despite the slight drop in stocks, positive trends were seen in Gilead, Nikola, CarMax, and Nike. Furthermore, home prices hit record highs in May, making homeownership more challenging. As stock values dip and the AI-rally cools, the stock market remains uncertain as investor sentiments shift.