Traders work on the floor of the New York Stock Exchange during morning trading on Oct. 8, 2024.
Michael M. Santiago | Getty Images
Stocks seesawed in early trading Thursday as Nvidia gyrated following the release of its latest quarterly results.
The Dow Jones Industrial Average added 95 points, or 0.2%. The S&P 500 dipped 0.2%, and the Nasdaq Composite pulled back 0.9%.
Nvidia reported better-than-expected third-quarter results and issued strong guidance Wednesday after the bell. But shares of the AI-chip juggernaut, up more than 190% this year, slipped about 1%. Some traders cited the chipmaker’s slowing revenue growth from previous quarters as cause for concern — or that the chipmaker didn’t exceed the most optimistic estimate in its forecast for the next quarter.
The stock briefly punched into the green after slipping in the premarket as investors bought the dip, and most Wall Street analysts gave bullish reports on the earnings and raised their price targets. However, that gain was short-lived and the stock was last about flat.
“Any weakness will likely be bought for investors but traders who require beats and raises every quarter could lighten their exposure if no big beats happen for a few quarters,” Eric Clark, portfolio manager of the Rational Dynamic Brands Fund, said about Nvidia. “When growth & momentum investors leave a stock, they generally leave skid marks.”
Nvidia 1-day
Market sentiment also got a boost from the crypto market. Bitcoin crossed the $98,000 level for the first time late Wednesday as investors maintained their hopes that a second Donald Trump presidency will bring in supportive regulation for the industry. It was last trading around $97,451.
In other news, Snowflake popped nearly 30% after topping Wall Street’s estimates and lifting its product revenue guidance for the fiscal year.