Nvidia stock took a hit on Tuesday, setting itself up for its worst day since last May, just before the chip maker was set to release its earnings report on Wednesday.
Shares of Nvidia were down 5.4%, marking the biggest drop since May 31, 2023, when they fell 5.7%, according to Dow Jones Market Data. The company has been on a bit of a downward trend lately, with the stock falling for four out of the past five days.
Despite this recent dip, Nvidia has had a strong showing overall, with an impressive 11.6% gain in February and a whopping 39% increase so far in 2024. Over the past year, Nvidia shares have surged an incredible 232%.
On Tuesday morning, the Nasdaq Composite was down 1.3%, and the S&P 500 was down 0.7%. However, the Dow Jones Industrial Average was only down 0.1%, with Nvidia leading the drag on tech stocks.
"I think what you're seeing is just some hedging up ahead of the results," said Tom Essaye from Sevens Report Research in a phone interview with Barron’s. "I think that’s part of it. The other part of it is you're still seeing some follow through from Friday selling, too, as people are getting, not nervous about a rebound in inflation, but a little less sure that inflation is just going to keep going straight down in a line."
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