US Stocks Mixed as Nvidia Rebounds, Tech Leads Gains

Mixed performance was the expression that best describes Tuesday’s US stock market. The S&P 500 had a little increase, but the tech-heavy Nasdaq Composite saw a roughly 1% increase. Still, the Dow Jones Industrial Average dropped by almost 1%. This uneven performance came after the IT industry, especially Nvidia, a major manufacturer of AI chips, had just seen a downturn. Tuesday saw a more than 5% increase in Nvidia’s stock price, partially offsetting Monday’s over 6% decline.

Real Estate Lags on Housing Data

Due to unsatisfactory housing statistics, the real estate industry lagged the most. Despite setting a new record high for property prices in April, the yearly growth rate decreased from the previous month.

Tech Sector Leads Gains, Nvidia Eases Previous Concerns

Tuesday’s largest gainer was the IT industry, which was driven by Nvidia’s comeback. There were advances in the communications and services industries as well.

Concerns about a wider tech sell-off were allayed by Nvidia’s stock rebound. Analysts speculate that significant investors’ portfolio rebalancing and profit-taking at the conclusion of the quarter may have contributed to the current downturn.

Big Tech Rally Not Necessarily a Risk

A few major IT companies’ domination in the current market surge, according to some analysts, may not be a bad thing. They make note of the fact that these businesses are reporting impressive profits and are profiting from the development of artificial intelligence.

Market Outlook

Some analysts continue to have positive forecast on the stock market despite the recent turmoil. They cite the S&P 500 year-end objectives that were recently upgraded as well as the large-cap tech stocks’ resistance to the current climate.

On Tuesday, the US stock market had a mixed performance. The tech sector rebounded, led by Nvidia’s recovery. Unfortunately, the weak housing data caused the real estate market to lag. While some concerns remain about the dominance of big tech, analysts generally hold a positive outlook for the market.