NEW YORK – Wall Street’s artificial intelligence darling, NVIDIA Corp (NASDAQ: NVDA), stumbled significantly on Thursday, closing the session with a notable loss that has investors feeling anxious about the market’s direction for the week ahead.
The chipmaking giant ended the day at
3.03, or 2.09%. The negative sentiment lingered after the bell, with the stock slipping an additional 0.12% in after-hours trading. This sell-off marks a significant pullback from its previous close of $145.00 and raises questions about the sustainability of the recent tech-led rally.
Thursday’s trading session was characterized by persistent selling pressure. After opening lower at
140.86** as sellers dominated the action, pushing it far from its daily high of $143.58. The failure to reclaim lost ground before the close suggests a solidifying bearish sentiment.
Analysis for Monday’s Market:
NVIDIA’s performance is a critical barometer for the tech sector and the overall market. Its substantial drop carries significant weight and offers clues for the start of next week’s trading.
The case for a down market on Monday:
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Leader’s Weakness: When a market leader like NVIDIA falls by over 2%, it often signals a “risk-off” mood among investors that can spread to other high-growth tech stocks and the broader indices like the Nasdaq 100.
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Strong Selling Volume: The decisive downward move and the inability to rebound intraday indicate that the selling was not a minor blip but a more significant shift in sentiment. The continued slide in after-hours, though small, reinforces this view.
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Psychological Barrier: Falling sharply from the psychologically important $145 level could trigger further technical selling as automated trading programs and cautious investors react to the break in momentum.
The case for a potential rebound:
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“Buy the Dip” Opportunity: NVIDIA has been one of the market’s strongest performers. A sharp, one-day drop might be seen by bullish investors as a prime opportunity to buy into a premier AI company at a discount, potentially providing support on Monday.
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Profit-Taking: The decline could simply be a healthy round of profit-taking after a massive run-up (the 52-week low is $86.63). Once this wave of selling is exhausted, buyers could step back in.
:
While a bounce is always possible in a volatile market, the technical signals from Thursday’s session are overwhelmingly negative. The strength of the sell-off in a market-leading stock, combined with a weak close, suggests that the path of least resistance is to the downside. Investors should brace for a likely lower and volatile open on Monday, as the market grapples with the fallout from NVIDIA’s significant decline.
Disclaimer: This article is for informational purposes only and is not intended as financial advice. Stock market predictions are inherently uncertain, and investors should conduct their own research before making any trading decisions.
