The stock market saw a shift in sentiment on Wednesday, as the CNN Money Fear and Greed Index moved into the “Neutral” zone. This indicates a more cautious approach from investors compared to the previous day.
Nvidia’s earnings report, released after the closing bell, was a mixed bag. While the company reported better-than-expected sales and profits for the second quarter, its gross margin contracted from the first quarter, leading to a decline in the stock price in after-hours trading.
Other companies experiencing significant stock drops included Foot Locker, Inc. and Super Micro Computer, Inc. Foot Locker shares tumbled nearly 10% following the release of its quarterly results, while Super Micro Computer shares dipped almost 19% after announcing a delay in its Form 10-K filing.
On the economic front, mortgage applications in the United States saw a slight increase of 0.5% for the week ending August 23.
The majority of sectors on the S&P 500 closed lower, with consumer discretionary, information technology, and communication services stocks recording the largest losses. However, financials and healthcare stocks bucked the overall trend, ending the day in positive territory.
The Dow Jones Industrial Average closed down approximately 159 points to 41,091.42. The S&P 500 fell 0.60% to 5,592.18, and the Nasdaq Composite dipped 1.12% to 17,556.03.
Investors will be looking towards earnings reports from Best Buy Co., Inc., Dollar General Corporation, and Dell Technologies Inc. later today.
