Stock market today: Dow, S&P 500, Nasdaq slide as Russia-Ukraine tensions rattle markets
In This Article:
US stocks tumbled on Tuesday as fears over a nuclear escalation to the Russia-Ukraine war rattled markets, stealing focus from Nvidia (NVDA) earnings and other corporate results.
The Dow Jones Industrial Average (^DJI) led the declines, down about 0.8%. The benchmark S&P 500 (^GSPC) slid roughly 0.5% to fall below its election breakout level, while the tech-heavy Nasdaq Composite (^IXIC) also dropped around 0.5% on the heels of a mixed day for the major gauges.
Stocks are retreating as investors assess news that President Vladimir Putin has signed a revised nuclear doctrine that allows Russia to expand its use of atomic weapons.
The changes mean any large-scale aerial attack could prompt a nuclear response, and come just days after President Joe Biden gave Ukraine the go-ahead to use US long-range missiles to strike inside Russia. Ukrain carried out its first such aerial attack in a border region on Tuesday morning.
US bond prices climbed alongside gains for gold (GC=F), and other safe-haven assets as the risk-off trade kicked in. Treasury yields — which move inversely to bond prices — fell, with the 10-year benchmark yield (^TNX) down 5 basis points to around 4.36%. Gold jumped almost 1% to trade at around $2,630 an ounce.
Bitcoin (BTC-USD) prices rose over 1.2% to trade above $91,500 a token.
The geopolitical situation blotted out themes such as corporate earnings, President-elect Trump's cabinet picks, the path of interest rates, and Wall Street's view of where stocks are headed.
Retailers Walmart (WMT) and Lowe's (LOW) posted quarterly reports before the bell, with investors watching out for hints to the resilience of the consumer. Walmart stock popped following a boost to guidance after a strong quarter. Lowe's likewise beat on earnings and revenue, but the DIY giant's shares slipped amid a negative outlook for sales.
Meanwhile, the countdown is on to Nvidia earnings on Wednesday, seen as a test of the AI trade that has powered gains on Wall Street. The chipmaker's stock edged higher in premarket trading after getting bruised by a report of overheating issues with its flagship new AI product.
Goldman Sachs strategists said they expect outperformance by Nvidia and its "Magnificent Seven" tech megacap peers to narrow next year, in an S&P 500 (^GSPC) forecast setting a 6,500 target by the end of next year.
LIVE 5 updatesSuper Micro Computer soars over 25% after filing plan to avoid Nasdaq delisting
Super Micro Computer (SMCI), an AI server maker and Nvidia (NVDA) partner, soared over 25% premarket Tuesday. The sprint higher came after the company on Monday submitted a filing with the Securities and Exchange Commission saying that it's supplied a compliance plan with the Nasdaq to avoid delisting.
Also boosting the stock, Super Micro said it's hired a new auditor, BDO, after its prior accountant, Ernst & Young, resigned in late October.
The company was in hot water with the Nasdaq after delaying both its annual and quarterly filings to the SEC following a scathing report from short-selling firm Hindenburg Research. The report shed light on potential accounting malpractices, violations of export controls, and shady relationships between top executives and Super Micro partners. The company is reportedly being investigated by the Department of Justice.
Even with this week's surge, shares have tumbled roughly 56% over the past three months. After gaining as much as 300% earlier this year, SMCI stock is now down over 20% in 2024.
Good morning. Here's what's happening today.
Economic data: Housing starts (October); Building permits (October)
Earnings: Lowe's (LOW), Walmart (WMT), XPeng (XPEV)
Here are some of the biggest stories you may have missed overnight and early this morning:
Wall Street isn't banking on AI to lift stocks any more
Nvidia options primed for $300B post-earnings price swing
YF columnist Rick Newman: My Trump trade went bust — with a consolation prize
Walmart lifts guidance after earnings and revenue beats
Goldman sees S&P 500 hitting 6,500 by end of next year
DOJ will push Google to sell Chrome to break search monopoly
Super Micro stock surges as company files plan to avoid Nasdaq delisting
Walmart's e-commerce business is still on fire
Walmart (WMT) has worked very diligently behind the scenes the past two years to be a major player online. The retailer has expanded its assortment online and has fine-tuned its "buy online, pick up in store" functionality — among other initiatives.
The efforts continue to show up on earnings days.
Here are the company's e-commerce results by division for the third quarter reported this morning:
These results are eye-popping for two reasons: 1) Walmart isn't exactly a startup; 2) the competition online is as fierce as ever.
I am talking to Walmart CFO John David Rainey live at 9:15 a.m. ET on Yahoo Finance. Rest assured, we will ask him about these online sales numbers!
How Goldman sees the Mag 7 trade playing out in 2025
Hat tip to Goldman Sachs's chief US equity strategist David Kostin for calling out specific stocks in his 2025 outlook piece that just dropped.
So often these year-end works of art from investment bank strategists simply serve up S&P 500 (^GSPC) targets, with various underlying scenarios explained. But usually, no stock predictions.
Kostin is calling out another year of strong performance for the Mag 7 trade, just not as hot as recent years.
Says Kostin:
It's a good point by Kostin, and comes in the face of all these Mag 7 stocks trading at rich multiples on hearty outlooks for profit growth. There is only so far you can push a stock price using reasonable future financial assumptions!
You can toil around on Mag 7 valuations on Yahoo Finance's new stock comparison tool here.
If there is one thing that could trip Nvidia bulls up
As I noted on Monday in our blog, expectations on Nvidia's (NVDA) earnings and outlook are very robust ... to say the very least.
If there is one thing that could trip up the bullish trade the morning after earnings, it's Nvidia's guidance. While it will likely be above consensus, it may not be above consensus enough given the dynamics around Blackwell chip demand. Nvidia could opt to go stronger with guidance when it reports three months from now or so.
Important point on this from Stifel analyst Ruben Roy this morning in a note:
