Stocks Tank, Dow Down 600+

Stocks fell Thursday, with the Dow Jones Industrial Average losing more than 600 points, as a post-earnings rally in Nvidia failed to lift the broader market.

The 30-stock index gave up 605.78 points to close Thursday at 39,065.26. putting it on track for its biggest one-day loss of the year. Boeing was the biggest laggard in the Dow, falling 6.7%.

The S&P 500 shed 39.17 points to 5,323.18, after hitting a record high earlier during the session.

The NASDAQ descended 65.51 points to 16,736.03.

Chipmaker and artificial intelligence darling Nvidia surged more than 8%, sending shares above $1,000, after posting stronger-than-expected fiscal first-quarter results and announcing a 10-for-1 stock split.

Fiscal second-quarter revenue guidance of about $28 billion also beat an LSEG consensus forecast of $26.61 billion — a sign the company doesn’t see its momentum slowing. For the bottom line, analysts expect a profit of $5.95 per share.

Nvidia’s results have been a focal point for Wall Street, as traders hoped for signs that the excitement around AI is not waning. With its $2.3 trillion market cap, Nvidia also has considerable sway over the broad S&P 500.

However, the majority of the stocks in the broad market index turned negative.

Traders are currently pricing just a 51% chance the Fed will cut rates in its September meeting, down from 58% a day ago and nearly 68% in the prior week. When the level falls, below 60%, it’s viewed as no longer likely that the Fed will take action.

On the economic side, new homes sold at a much slower than expected pace in April, the Commerce Department reported Thursday.

Sales of new single-family homes totaled 634,000 for the month, a 4.7% drop from March and less than the Dow Jones estimate for 677,000.

Prices for the 10-year Treasury slipped, raising yields to 4.48% from Wednesday’s 4.43%. Treasury prices and yields move in opposite directions.

Oil prices shed 73 cents to $76.84 U.S. a barrel.

Gold prices dipped $60.00 to $2,332.90.

Stocks Tank, Dow Down 600+