Wall Street Slumps, Despite Nvidia's Surge

Dow falls more than 370 points
By Newser Editors and Wire Services
Posted Aug 24, 2023 3:05 PM CDT
Wall Street Slumps, Despite Nvidia's Surge
The Nvidia office building is shown in Santa Clara, Calif., Wednesday, May 31, 2023.   (AP Photo/Jeff Chiu)

Wall Street continued its August doldrums on Thursday:

  • The Dow fell 373 points, or 1%, to 34,099.
  • The S&P 500 fell 59 points, or 1.3%, to 4,376.
  • The Nasdaq fell 257 points, or 1.8%, to 13,463.

Thursday's weakness came despite a much stronger-than-expected profit report from Nvidia, one of Wall Street's most influential stocks, per the AP. Nvidia first stunned the market three months ago when it said the quick adoption of AI would send its revenue soaring in the three months through July. Its sales came in even better than forecast, at $12.51 billion, and the company gave a forecast for the current quarter that again blew past Wall Street's expectations. Nvidia climbed 1.7%, bringing its gain for the year so far to 228%. It was the biggest single force pushing upward on the S&P 500.

On the losing end of Wall Street, Dollar Tree fell 11.9% despite reporting stronger profit and revenue for the latest quarter than expected. It said customers are shifting their purchases toward products that are less profitable for the company. Like other retailers, it also cited inventory "shrink," which is a term the industry uses to describe theft and other losses of products. Petco tumbled 21.3% after saying its customers are also feeling pressure. The seller of pet supplies cut its forecast for earnings over the full year, though its results for the latest quarter matched or beat analysts' expectations.

(More stock market stories.)

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