US stocks slip as chip giant Nvidia slumps
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Traders working on the floor at the New York Stock Exchange, in New York City.
PHOTO: REUTERS
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NEW YORK – US stocks fell on Feb 20 at the beginning of a shortened week of trading due to the President’s Day holiday, dragged down by Nvidia, which slipped ahead of upcoming earnings results.
The Dow Jones Industrial Average closed 0.2 per cent lower at 38,563.80, while the broad-based S&P 500 fell 0.6 per cent to 4,975.51.
The tech-rich Nasdaq Composite Index declined 0.9 per cent to 15,630.78. Chip giant Nvidia was down 4.4 per cent.
However, its stock is still up markedly since the beginning of the year, with enthusiasm for artificial intelligence-related companies having sent its share price surging.
“The stock is up about 40 per cent year to date and the year is less than two months old,” said Mr Steve Sosnick of Interactive Brokers.
“It’s reasonable to think that some risk aversion is appropriate.”
The company is due to publish its earnings after markets close on Feb 21.
Among other stocks on the decline was Applied Materials, which fell 5.2 per cent, and Advanced Micro Devices, which closed 4.7 per cent down.
After the closing bell, cyber-security company Palo Alto Networks saw its shares tumble more than 12 per cent in after-hours trading after it lowered its earnings guidance for the year ahead. AFP
