US stocks have closed lower as Wall Street remains skittish.
Wall Street stocks slid on Thursday in a sharp reversal from an early rally, as technology gains faded after a boost from Nvidia's earnings and US jobs data muddied the labour market outlook.
Shares of Nvidia ended lower after surging as much as 5 per cent earlier in the day. Most chip-related companies also were negative, with an index of semiconductors also down.
Both the Nasdaq and Dow swung more than 1,000 points from their highs of the day to their lows, with the Nasdaq ending down more than 2 per cent after being up 2.6 per cent at its intraday high. Wall Street's fear gauge, the Cboe Volatility index , jumped.
Ongoing tech concerns
Investors have worried about lofty technology valuations amid concerns over steep artificial intelligence spending, with the Nasdaq now sharply off its October high.
In addition, data showed the US unemployment rate rose in September even as employers added more jobs than economists had expected. Traders now see an increasing chance of a Federal Reserve interest rate cut in December.
According to preliminary data, the S&P 500 lost 103.07 points, or 1.52 per cent, to end at 6,539.09 points, while the Nasdaq Composite lost 479.64 points, or 2.16 per cent, to 22,084.59. The Dow Jones Industrial Average fell 381.52 points, or 0.83 per cent, to 45,757.25.
Nvidia, the world's most valuable company, forecast sales above analysts' estimates for the fourth quarter and surpassed expectations for third-quarter revenue.
In addition, Nvidia CEO Jensen Huang shrugged off concerns about AI on a call with analysts, saying, 'We see something very different.'
NVIDIA Corporation is the world leader in the design, development, and marketing of programmable graphics processors. The group also develops associated software. Net sales break down by family of products as follows:
- computing and networking solutions (89%): data center platforms and infrastructure, Ethernet interconnect solutions, high-performance computing solutions, platforms and solutions for autonomous and intelligent vehicles, solutions for enterprise artificial intelligence infrastructure, crypto-currency mining processors, embedded computer boards for robotics, teaching, learning and artificial intelligence development, etc.;
- graphics processors (11%): for PCs, game consoles, video game streaming platforms, workstations, etc. (GeForce, NVIDIA RTX, Quadro brands, etc.). The group also offers laptops, desktops, gaming computers, computer peripherals (monitors, mice, joysticks, remote controls, etc.), software for visual and virtual computing, platforms for automotive infotainment systems and cloud collaboration platforms.
Net sales break down by industry between data storage (88.3%), gaming (8.7%), professional visualization (1.4%), automotive (1.3%) and other (0.3%).
Net sales are distributed geographically as follows: the United States (46.9%), Singapore (18.2%), Taiwan (15.8%), China and Hong Kong (13.1%) and other (6%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
