Nvidia, the ‘AI’ locomotive which – single-handedly – took the US indices to the heights and from record to record in the second quarter, seems to be slipping on an upward slope which becomes too strong at the start of the third quarter.
The ‘loco’ suddenly loses its traction capacity and begins to slide backwards, faster and faster with -6.7% this Monday, which doubles its losses from the two previous sessions (i.e. -13% in 72 hours, which represents -$400 billion in evaporated ‘capi’, the equivalent of LVMH).
This first session of the July stock market therefore ended in the red for the two leading indices of the first half: the S&P 500 lost 0.3% to 5,448 and the Nasdaq Composite lost 1.1% to 17,497.
The semiconductor sector fell 2.8% and finished last out of 11 on Wall Street. Conversely, the oil sector dominated the ranking thanks to the rise of its usual leaders.
The historic Dow Jones index continued to catch up with the ‘S&P’ with a gain of almost +0.7% to 39,411, and even a test of 39,570 during the session (the ‘Dow’ thus returned to 1.1 % of his records).
More generally, some questions became more pressing as the first debate for the presidential election approached. Will Joe Biden be able to respond to Donald Trump and overcome a debate that could be ‘uncompromising’?
The markets should also remain prey to uncertainties regarding the pace of inflation across the Atlantic. In this context, speakers will closely follow Friday’s publication of the ‘PCE’ inflation index, particularly monitored by the Fed.
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