Zinger Key Points
- Nvidia's decline and ASML's earnings miss contribute to a broader market downturn, with Nvidia-focused ETFs experiencing significant swings.
- Investor sentiment is challenged by concerns over rising interest rates, leading to a tug-of-war between bears & bulls in the stock market.
- Get New Picks of the Market's Top Stocks
Concerns over rising interest rates and a barrage of corporate earnings reports continue to affect U.S. stocks.
What Happened: On Wednesday, April 17, all three major indexes opened in positive territory. But the market sentiment quickly soured.
- The S&P 500 closed down approximately 0.6%
- Dow Jones Industrial Average posted a more modest loss of 0.1%.
- The tech-heavy Nasdaq Composite plunged over 1% by the day’s end.
Tech: S&P 500’s Worst Performing Segment
Tech giants played a pivotal role in driving the day’s market action.
- Nvidia Corp NVDA took a notable hit, tumbling nearly 4%
- Meta Platforms Inc META also saw a decline of over 1%.
- The Technology Select Sector SPDR Fund XLK emerged as the worst-performing segment within the S&P 500, shedding nearly 1.5%.
- ASML Holding NV ASML, the Dutch semiconductor equipment giant’s shares plummeted more than 7% following a disappointing quarterly update.
Despite resilient sales to China amidst U.S. restrictions, ASML missed order estimates, sending shockwaves through the chip sector.
Investors now brace for further fallout ahead of Taiwan Semiconductor Manufacturing Co Ltd‘s TSM earnings report on Thursday, April 18. The company’s report will likely carry significant implications for the entire industry.
Nvidia-Focused ETFs In The Spotlight
Exchange-traded funds (ETFs) focused on Nvidia found themselves in the spotlight.
Top ETF Gainers On Wednesday
- Direxion Daily Semiconductor Bear 3x Shares SOXS surged by 7.63%; this bearish ETF capitalized on the downturn in semiconductor stocks.
- ETF Opportunities Trust T-Rex 2X Inverse NVIDIA Daily Target ETF NVDQ posted a gain of 8.21%; this inverse ETF offered investors double the inverse exposure to Nvidia’s daily performance.
- GraniteShares 2x Short NVDA Daily ETF NVD spiked 8.02%; this ETF leveraged a short position on Nvidia’s daily movements.
- ProShares UltraShort Semiconductors SSG climbed 13.82; this ETF provided ultra-short exposure to the semiconductor sector, benefiting from the broader weakness in chip stocks.
Top ETF Losers On Wednesday
- Direxion Daily Semiconductor Bull 3x Shares SOXL plunged 7.71%
- GraniteShares 2x Long NVDA Daily ETF NVDL slid 7.80%; this leveraged ETF magnified losses as Nvidia shares declined.
- ETF Opportunities Trust T-Rex 2X Long NVIDIA Daily Target ETF NVDX dropped 8.02%; this ETF doubled the exposure to Nvidia’s daily performance, resulting in amplified losses.
- Direxion Daily NVDA Bull 2X Shares NVDU fell by 7.90%; this bullish ETF faced headwinds as Nvidia shares declined, eroding investors’ returns.
As Nvidia-centric ETFs stole the limelight with their volatile movements, investors navigated through a landscape fraught with uncertainty. They can be seen grappling with divergent market forces and the ever-present specter of interest rate hikes.
Read Next: Jim Cramer Explains What Could Trigger Further Market Decline – ‘If You Want To Get Out, Go Ahead …’
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