The S&P 500 ended at the flat line, the Nasdaq Composite fell 0.1%, while the Dow Jones emerged as the outperformer, ending with gains of close to 150 points.
Nvidia shares had ended 1.7% lower ahead of its earnings report and fell another 2.5% in extended trading after the it reported slowing sales growth and guidance failed to meet lofty expectations.
Nvidia’s swings often bleed through to smaller stocks, according to Bespoke Investment Group.
“Since the end of May, there has been a tendency for the Russell 2000 to perform poorly when NVDA has surged as it sucks all the capital from the pool, and vice versa,” the strategists wrote.
To Subitha Subramaniam, chief economist at Sarasin & Partners, the market’s reliance on single stocks to drive benchmarks higher sets off red flags.
Bloomberg’s gauge of the dollar advanced 0.4%, rebounding from a three-day drop. US Treasuries struggled to erase losses while Wall Street’s fear gauge, the VIX, advanced for the second day, jumping as much as 15%. An auction of 20-year bonds received a lukewarm reception, adding to the cautious tone on Wall Street.
Traders are also monitoring President-elect Donald Trump’s administration picks, especially his selection for the Treasury secretary role. Former Federal Reserve Governor Kevin Warsh and Apollo Global Management’s Marc Rowan are contenders, according to people familiar with the matter. Meanwhile, Trump tapped Cantor Fitzgerald LP Chief Executive Officer Howard Lutnick to lead the Commerce Department, a key role to facilitate his tariff and trade policies.
“As I look at the Treasury secretary race, I want to see exactly who is in that role because the tax policies, the debt limit all come back,” Ed Mills, Washington policy analyst at Raymond James, told Bloomberg Television. “We need to see exactly how that person has a relationship with the Federal Reserve, because monetary policy will quickly figure into all of this.”
Bitcoin set another all-time high, supported by a series of developments highlighting the deepening embrace of the digital-asset industry in the US under crypto cheerleader Trump. The world’s largest cryptocurrency is fast approaching $100,000, helped along by MicroStrategy Inc.’s massive purchases.
(With Inputs From Agencies.)