US open: Markets mixed as Nvidia rebounds, Boeing drops

25th Jun 2024 14:34

(Sharecast News) - US stock markets opened mixed on Tuesday with the Dow in the red but the S&P 500 and Nasdaq snapping a three-day losing streak as Nvidia rebounded after recent falls.

As of 0952 EDT, the S&P 500 was rising 0.2% while the Nasdaq gained 0.6%. Both indices have been on the retreat since hitting fresh record highs on 18 June as investors took profits in Nvidia following the stock's eye-watering rise so far this year. Nvidia was up 3.2% in early deals after a 13% drop over the past three sessions.

"There are a few FOMC members speaking this afternoon, but otherwise the calendar is light. That suggests that NVIDIA will continue to pull the focus as analysts debate just how valuable the company could become, given its pole position in the future development of generative AI," said David Morrison, senior market analyst at Trade Nation.

The Dow Jones Industrial Average was 0.2% lower on the back of a drop in the price of heavyweight Boeing, after a Korean Air Boeing aircraft heading for Taiwan dropped 25,000 feet in five minutes following a fault with its pressurisation system. Separately, US prosecutors recommended overnight that the Department of Justice bring criminal charges against Boeing for violating a settlement related to two fatal crashes in 2018 and 2019.

Also weighing on sentiment in the aerospace sector was an update from French giant Airbus which slashed its full-year earnings and delivery targets for the year as a result of a "degraded operating environment".

Microsoft was trading lower after the European Union accused the company of violating competition regulations, through the "abusive" bundling of its Teams and Office products. The accusation stemmed from Microsoft's practice of tying its Teams communication tool to its Office 365 and Microsoft 365 productivity suites, which the EU claims restricts competition.

Tesla rose despite the news it is to recall 11,000 Cybertrucks after issues were found with its wipers and trunk-bed trims.

In economic news, the S&P/Case-Shiller 20-city home price index showed annual growth slowing to 7.2% in April from 7.5% in March, though still well above the 6.9% consensus forecast.

Meanwhile, the national consumer confidence index by the Conference Board fell to 100.4 from 101.3, coming in marginally ahead of the 100 reading expected.