[New York Stock Market] Nvidia Plummets, Closes Lower... Nasdaq Down 1.16%

Major indices on the New York Stock Exchange closed lower. This was due to the confusing direction of the February nonfarm payroll data, followed by a sharp decline in Nvidia, an AI stock that had been gaining popularity.

On the 8th (local time) at the New York Stock Exchange, the Nasdaq index closed at 16,085.11, down 188.26 points (1.16%) from the previous session.

The Standard & Poor's (S&P) 500 index closed at 5,123.69, down 33.67 points (0.65%) from the previous session.

The Dow Jones Industrial Average, one of the three major indices along with the Nasdaq and S&P 500, also closed lower at 38,722.6, down 68.86 points (0.18%) from the previous session.

In the early session, the indices rose rapidly. The S&P 500 index climbed to an intraday high of 5,189.2, setting a new record high. The Nasdaq index also surged to 16,449.70, marking an all-time high. However, as investors recognized these levels as peaks and began taking profits, the market turned downward.

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The February U.S. nonfarm payroll data released that day also showed mixed signals. According to the U.S. Department of Labor, nonfarm payrolls increased by 275,000 in February, exceeding the expert forecast of 198,000.

On the other hand, the unemployment rate rose to 3.9% in February, surpassing the expected 3.7%. This is the highest level since January 2022, when it was 4.0%.

In the end, although employment increased, the unemployment rate exceeded expectations, making it difficult for market participants to interpret the data.

Nvidia’s sharp decline also impacted the stock market that day. Nvidia’s stock price fell more than 5%, the largest daily drop since May last year.

Not only Nvidia, but semiconductor stocks that had recently risen, including Intel (-4.66%), AMD (-1.89%), Micron Technology (-1.37%), and Marvell Technology (-11.36%), all closed sharply lower. Tesla also fell 1.85% that day, marking a 13% decline over the week.