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Rally Loses Steam, Markets Take Sharp Fall

Stocks fell Thursday as excitement around blockbuster Nvidia results failed to boost the broader market, and investors looked ahead to a key speech from Federal Reserve Chairman Jerome Powell.

The Dow Jones Industrials withered 373.56 points, or 1.1%, to close Thursday at 34,099.42.

The S&P 500 index dropped 59.7 points, or 1.4%, to 4,376.31.

The NASDAQ index lost 257.06 points, or 1.9%, to 13,463.97.

Nvidia shares reached an all-time high after the company reported quarterly earnings and revenue that exceeded lofty analyst expectations.

The company also raised its guidance, with executives predicting third-quarter revenue would climb to $16 billion, or a year-over-year increase of 170%.

However, the stock closed just 0.1% higher, and the broader tech sector was under pressure. Shares of Amazon lost 1.8%, and Apple declined 1.9%, while Netflix shed 3.8%. The information technology sector was among the S&P 500’s biggest losers, down 1.2%, weighed by declines in other semiconductor stocks including Advanced Micro Devices and Intel.

Dollar Tree was the worst-performing stock in the S&P 500, losing 12% on disappointing third-quarter guidance. Shares of Nike shed 1.1%, extending their record losing streak.

Thursday’s moves come as investors await comments from Federal Reserve Chair Jerome Powell from Jackson Hole, Wyoming, on Friday, which Wall Street hopes will provide insight toward the path of benchmark interest rates.

Prices for the 10-year Treasury were down, raising yields to 4.24% from Wednesday’s 4.19%. Treasury prices and yields move in opposite directions.

Oil prices regained three cents to $78.92 U.S. a barrel.

Gold prices sagged $3.20 to $1,944.90 U.S. an ounce.

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