Business · Malaysia Bureau
US stocks slide as Nvidia weakness offsets energy sector strength
Wall Street closed lower as a sharp decline in Nvidia shares outweighed gains in the energy sector. The chipmaker's stock recovered modestly from earlier steep losses as retail investors showed strong appetite for the dip.
LSN Malaysia ·
US stocks finished the session in negative territory, with technology sector weakness proving more influential than energy sector advances. Nvidia, a key driver of market sentiment, fell 4.3% despite recovering significantly from intra-day lows that saw the stock plunge nearly 12% earlier in trading.
Retail investors demonstrated aggressive buying during the opening half hour, accumulating a record US$111 million worth of Nvidia shares as prices declined. The buying activity appeared to provide some support to the stock, limiting its losses by the close of the session.
The broader market weakness reflects ongoing investor caution about valuations in the technology sector, particularly among mega-cap companies that have dominated recent market gains. Energy stocks bucked the broader downtrend, providing some support to the overall index performance.
The divergence between technology and energy sectors underscores shifting market dynamics as investors reassess positions amid economic uncertainties and shifting monetary policy expectations.