Nvidia experienced a significant drop on Tuesday, losing a staggering $279 billion in market value in a single day. This marked the fifth time the stock has experienced such a massive loss. The stock plummeted by 9.5% and is now down by 23.3% since June 20. Despite this, Nvidia has managed to maintain a positive trajectory throughout the year, with a notable increase of 118% in 2024. However, the stock continued to decline by 2% after-hours trading due to antitrust concerns reported by Bloomberg.
The popular VanEck Semiconductor ETF (SMH) suffered on Tuesday, falling by 7.5% and is now down by 20.5% since July 11. The iShares Semiconductor ETF (SOXX) also experienced a decline of 7.6% and is down by 20% since July 11. In the past week, Micron Technology and Advanced Micro Devices both fell by 9.5% and 9% respectively, while KLA dropped by 8.8%.
On a more positive note, the SPDR S&P Dividend ETF (SDY) only fell by 0.4% on Tuesday and hit a 52-week high earlier in the session. Despite criticisms about the low dividend yield of 2.4%, the ETF managed to stabilize. The S&P Utilities Sector finished flat on Tuesday, reaching a new 52-week high with a 3% dividend yield. As interest rates decreased, investors turned to utilities for their steady dividends, resulting in a 7% increase since March 2022. The Relative Strength Index of the sector is at 71, indicating potential overbought conditions.
The SPDR S&P Homebuilders ETF (XHB) experienced a 3.4% decline on Tuesday, positioning itself 6.5% from the July 31 52-week high. However, some real estate companies like Champion Homes, Builders FirstSource, and Floor & Decor saw notable increases in the past month. Conversely, TopBuild faced a significant 15% decline during the same period.
The S&P Energy sector took a hit on Tuesday, experiencing a 2.4% decline and is now 9.4% from the April high. Companies like APA, EOG Resources, Halliburton, Exxon Mobil, Chevron, and ConocoPhillips all faced losses during the session. On the bright side, Oneok and Targa managed to rise by 15% in a month. Meanwhile, APA, Halliburton, and SLB struggled with a 6% decline.
As the football season approaches, gambling stocks like DraftKings, Flutter, MGM Resorts, and Caesars Entertainment have all faced significant declines since earlier in the year. DraftKings is down by 22% since February, while Flutter is 3% in the same time period. MGM Resorts and Caesars Entertainment are also experiencing steep drops, signaling a challenging period for the gambling industry.
The stock market exhibited significant volatility and fluctuations across different sectors in September. While some sectors faced notable declines, others managed to maintain stability or even experience growth. Investors need to closely monitor market trends and individual stocks to make informed decisions in the ever-changing financial landscape.