Dow Drops 1000 Points Amid Tech Troubles and Currency Volatility
The stock market experienced significant losses as investors sold off U.S. shares and exited positions in the Japanese yen, which has been appreciating against the dollar due to interest rate hikes by the Bank of Japan. The Dow dropped by 1,033 points (2.6%), the S&P 500 fell by 3%, and the Nasdaq declined by 3.4%.
Technology stocks, particularly those tied to artificial intelligence, were hit hard. Nvidia fell by 6.7%, and Intel dropped over 7%. The downturn followed a weaker-than-expected July jobs report, sparking fears that high interest rates might be stifling the U.S. economy.
The market rout deepened as investors unwound "carry trades," which involved borrowing in yen at low interest rates to invest in higher-yielding assets. The yen strengthened after the Bank of Japan raised interest rates to a 15-year high, leading to further market declines.
In response to the turmoil, Treasury yields dipped as investors sought the safety of government bonds. Despite the sell-off, analysts suggest the U.S. economy remains fundamentally sound, though the Federal Reserve faces pressure to cut rates.
Goldman Sachs and other banks now predict multiple rate cuts from the Fed later this year to stimulate the economy. Rising unemployment and the Sahm rule, which signals a recession, add to concerns. However, some analysts argue that the market's decline is more about investor positioning than underlying economic weakness.
NVDA sees MACD Histogram just turned negative
NVDA saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on November 15, 2024. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 47 instances where the indicator turned negative. In of the 47 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for NVDA moved out of overbought territory on November 08, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 46 similar instances where the indicator moved out of overbought territory. In of the 46 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 63 cases where NVDA's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NVDA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
NVDA broke above its upper Bollinger Band on November 07, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 06, 2024. You may want to consider a long position or call options on NVDA as a result. In of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NVDA advanced for three days, in of 373 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 377 cases where NVDA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. NVDA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 71, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: NVDA's P/B Ratio (59.880) is very high in comparison to the industry average of (8.167). P/E Ratio (66.564) is within average values for comparable stocks, (56.545). Projected Growth (PEG Ratio) (1.092) is also within normal values, averaging (3.001). NVDA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.021). P/S Ratio (36.765) is also within normal values, averaging (43.599).
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a manufacturer of computer graphics processors, chipsets, and related multimedia software
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