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Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., June 24, 2024.
Brendan McDermid | Reuters
Stock futures were mixed Tuesday after a sell-off in favored technology names led the Nasdaq Composite to its worst day since April.
Nasdaq-100 futures climbed 0.4%, while S&P 500 futures gained 0.2%. Futures tied to the Dow Jones Industrial Average fell 70 points, or 0.2%.
Nvidia shares were up more than 3%. In the previous session, the stock dropped more than 6% to mark its biggest one-day slide since April 19 — when it lost 10%.
The latest decline pushed the AI darling deeper into correction territory, down 16% from an intraday record set last week. Other semiconductor stocks were also under pressure on Monday, including Super Micro Computer, Qualcomm and Broadcom.
Nvidia’s losses pushed the Nasdaq Composite down more than 1% on Monday, its biggest one-day loss since April. The Nasdaq-100 also suffered its worst day since April, as investors rotated out of chipmakers. This inter-market shift boosted the Dow by more than 200 points, making it the lone U.S. stock benchmark to post a gain in the previous session.
But the recent sell-off in semis isn’t anything alarming given historical patterns. Renaissance Macro Research’s Jeff deGraaf told CNBC’s “Closing Bell” Monday that the summer is typically a tough time sector, noting that the third quarter typically registers as the worst period for the industry.
“The good news is I think Nvidia is still in the long-term uptrend,” he said. “I think these corrections probably prove to be buyable. You just have to temper that sentiment.”
In premarket trading Tuesday, SolarEdge Technologies sank 13% after announcing plans for a $300 million private offering of convertible notes, while Pool Corp dropped 11% after adjusting its guidance downward.
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