Stock markets started this week trading lower. The S&P 500 (SPY) and Nasdaq (QQQ) priced in a low chance of NVIDIA (NVDA) disappointing stock markets this week. The GPU supplier for the AI boom will report quarterly results this Wednesday after markets close.
Shares of Applied Optoelectronics (AAOI), Lumentum (LITE), and Credo Technology (CRDO) pulled back with the Nasdaq falling by 75 bps. Chip firms like Micron Technology (MU) and SanDisk (SNDK) lost 5.83% and 6.45%, respectively. Storage suppliers like Seagate (STX) and Western Digital (WDC) also lost ground.
Investors pivoted to traditional sectors instead. Visa (V), Mastercard (MA), and American Express (AXP) rose on Monday. Retailers like Costco (COST) and Walmart (WMT) also erased some of the stock price loss in recent months.
Investors continued to price in the non-military escalation between the U.S. and Iran. Dubbed an economic D-Day, markets priced in the government’s announcement of possibly expanding its sanctions on countries that conducted business with Iran.
Chinese EV firm Xpeng (XPEV) lost 8.53% after it posted quarterly results. Alibaba (BABA) lost 5% in the last week after announcing that it would raise HK$80B (US $10B). IT is selling shares that traded at an 8.4% discount to last Friday’s closing price. It would use all funds to invest in its full-stack AI capabilities.
Despite the sanctions, oil stocks fell. Cenovus Energy (CVE) dropped by 2.3%.
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