Nasdaq Drops as NVIDIA Faces Correction

By Tomasz Wisniewski|

Published: June 25 2024, 06:14 GMT+0

Nasdaq Drops as NVIDIA Faces Correction

Hello, welcome to Tuesday. Today brings some interesting moves in the market, so let’s dive into the details, starting with the calendar. North America is set to have a busy day with the release of the Canadian CPI, expected to drop from 0.5% to 0.3%. The day will conclude with the CB consumer confidence index, forecasted at 100.

On the indices front, the Nasdaq experienced a significant drop yesterday, driven by an ongoing correction in NVIDIA. Following its split, NVIDIA’s stock fell from 140 to 118, losing its status as the largest company by market cap and dropping to third place. This ongoing correction in AI stocks is currently the main story in the stock market. In contrast, other indices performed well, with the Dow Jones climbing higher and the FTSE in London also on the rise. However, the DAX is struggling due to a dispute between China and Germany over electric vehicle tariffs. The Chinese market is crucial for German automakers, and any reduction in tariffs would positively impact the DAX.

In the currency market, the Japanese Yen is strengthening, making it the strongest currency today. Meanwhile, the American dollar, New Zealand dollar, and British pound are showing weakness. This dynamic is interesting, considering the long-term pressure on the Yen.

Turning to commodities, oil had a very successful session yesterday, indicating a bullish trend. In contrast, precious metals are under bearish pressure. Gold is approaching a mid-term dynamic support, silver is testing long-term dynamic support, and platinum is bouncing off a key horizontal resistance. The situation with platinum is particularly intriguing and could present a promising short- to mid-term sell opportunity.

That’s the market overview for today. Keep an eye on these developments as they unfold throughout the trading day.