Today was a disappointing day for NVIDIA (NVDA, Financial), which initially traded nearly 3.0% higher in pre-open action following its earnings report. However, the stock ended the day down 8.5%, closing at 120.15. This decline contributed to a broader market correction phase driven by inflation worries and growth concerns, particularly due to tariff proposals and efforts to cut government spending.
The S&P 500 fell below 5,900, with mega-cap stocks primarily responsible for the decline. The Vanguard Mega-Cap Growth ETF (MGK, Financial) decreased by 2.6%, while the equal-weighted S&P 500 fell 0.9%. Despite the overall downtrend, the S&P 500 financial (+0.6%), energy (+0.5%), real estate (+0.4%), and consumer staples (+0.02%) sectors managed to finish higher.
The Nasdaq Composite dropped 2.8% and is now down 8.1% from its December all-time high. The Russell 2000 declined 1.6%, marking a 13.3% fall from its November high. The Philadelphia Semiconductor Index, impacted by losses in NVIDIA and related stocks, plummeted 6.1%, entering bear market territory.
The Dow Jones Industrial Average, after being up 451 points, ended the day below the unchanged line but still holds a 1.6% gain for the year. The market cap-weighted S&P 500 turned negative for the year (-0.3%), joining the Russell 2000 (-4.1%), Nasdaq (-4.0%), and the S&P Midcap 400 Index (-1.8%) in negative territory.
European markets saw mixed results with the DAX down 1.2%, FTSE up 0.3%, and CAC down 0.5%. In Asia, the Nikkei gained 0.3%, Hang Seng fell 0.3%, and Shanghai increased 0.2%. In commodities, Crude Oil rose to 70.36, Nat Gas decreased to 3.93, Gold fell to 2895.20, Silver decreased to 32.103, and Copper increased to 4.62.
MS Global Franchise Portfolio has made the following transactions:
Alphabet (GOOG, Financial) has entered oversold territory, with its Relative Strength Index (RSI) dropping to 29.17, the lowest since September. This suggests the stock may be undervalued, potentially offering a buying opportunity for investors. Historically, Alphabet has rebounded significantly from such lows, as seen in its 40.8% rise from September 2024 to February 2025.
Tesla (TSLA, Financial) is advancing its plans to launch a ride-hailing service in California, having applied for a transportation charter-party carrier permit. This step indicates the potential involvement of human drivers initially, with a future transition to a full robotaxi service. Tesla currently holds approval to test autonomous vehicles with safety drivers in the state.
Dell Technologies (DELL, Financial) reported a strong Q4 performance, with Non-GAAP EPS of $2.68 beating estimates by $0.16. Although revenue of $23.93B fell short by $640M, the company's Infrastructure Solutions Group saw a 22% revenue increase, driven by a 37% rise in server and networking sales. Dell's shares rose 3% in extended trading.
SoundHound AI (SOUN, Financial) exceeded expectations with a Q4 Non-GAAP EPS of -$0.05, beating by $0.03, and revenue of $34.54M, surpassing estimates by $0.84M. The company ended the year with nearly $200 million in cash and no debt, raising its 2025 revenue outlook to a range of $157 to $177 million.
Rocket Lab USA (RKLB, Financial) announced a significant multi-launch agreement with Japan's iQPS, marking one of its largest Electron launch deals. This agreement adds to a previous contract, totaling eight dedicated launches, further supporting iQPS' satellite constellation development.
Figure, a robotics company, announced its AI system, Helix, has advanced rapidly, prompting an accelerated timeline for launching home robots. Backed by investors such as Amazon's Jeff Bezos and Nvidia (NVDA, Financial), Figure raised $675M in February 2024 to support its robotics ambitions.
Opendoor Technologies (OPEN, Financial) experienced a drop in after-hours trading following weak Q1 guidance. The company forecasted Q1 revenue of $1.0B-$1.075B, below expectations, and projected a contribution profit of $40M-$50M. Despite surpassing Q4 revenue estimates with $1.08B, the guidance disappointed investors.
Archer Aviation (ACHR, Financial) reported a Q4 net loss of $198.1M. The company raised $300M to strengthen its financial position amid ongoing valuation concerns and market uncertainties surrounding eVTOL stocks.
Vistra Corp. (VST, Financial) highlighted a transformational year in 2024 with the acquisition of nuclear sites and retail customers. The company exceeded its adjusted EBITDA guidance, supported by a $545 million nuclear production tax credit, and reaffirmed its 2025 guidance.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.