TheDrop Market Analysis, 01/27/24
- Alexangel Ventura
- Jan 27
- 1 min read
Markets went on a massive selloff frenzy as fears of foreign competition in the AI technology industry grow.
The Nasdaq led today's losses with a 3% decline, followed by the S&P 500 by 1.5%, and most shockingly the blue-chip giant Dow with a rise of 0.6%. Quite surprisingly, many non-tech stocks did fairly well today. However, for the many large tech stocks which dominate the market, the day was much more bearish than previously anticipated. Due to the success of DeepSeek, a Chinese technology developer which perfected the AI software system, many American stocks reacted poorly as investors fear a possible Chinese entrance into the American technology industry
Most shocking of all today was Nvidia, which plummeted nearly 17% in a deadly turn of events. The company, which had been known for being very stable yet bullish stock, experienced its worst trading day since 2020. The stock fell $24.20 per share to now boasting a mere $118.42 per share, down from its highs of the 150s not too long ago. Many investors thought that investors' selloff from Nvidia could've been an overreaction, while others claimed it was a necessary correction to a less bloated market value.
Other stocks joined Nvidia in the red mirage. Oracle fell 13.8%, Rigetti fell 5.7%, Lucid fell 1.4%, SoFi fell 10.3%, and Broadcom fell 17.4%. So, while Nvidia did have very deadly results today, other stocks paralleled or even exceeded its losses as investors fear Chinese companies.
Some stocks did manage to hold on. AT&T rallied unexpectedly, while Apple and Target held their own as outliers in a sea of red for their fellow technology/service companies.
