NVIDIA stock down
NVIDIA (NVDA) stock tanked 13.82% on January 28 and closed at $138.01 after slashing its sales and margin guidance for the fourth quarter of fiscal 2019, which ends in January. The guidance cut came in the wake of sluggish growth in China (FXI). The company is expected to report its fourth-quarter results in mid-February.
In the past year as of January 28, NVIDIA stock has fallen almost 43%, and its market cap has come down to $84.2 billion. Semiconductor rivals Qualcomm, Broadcom, Advanced Micro Devices (AMD), and Micron have market caps of $61.4 billion, $23.4 billion, $20.2 billion, and $42.7 billion, respectively, as of January 28.
Market indexes closed down on January 28
Despite Fed Chair Jerome Powell’s positive comments on easing future interest rate hikes and the improved December job numbers that were announced earlier this month, the global economy still fears a slowdown. On January 28, the major market indexes were down during the entire trading session amid weak global growth.
The Dow Jones Industrial Average, the S&P 500, and the tech-driven NASDAQ closed the day with falls of 0.84%, 0.78%, and 1.11%, respectively, after major companies, including NVIDIA and Caterpillar (CAT), hinted that the economy was being hurt due to worries about China. While NVIDIA reduced its fourth-quarter sales guidance, Caterpillar disappointed investors as it missed its fourth-quarter profit expectations and forecast weak guidance for 2019 due to soft demand in China.
Apple provided a weak sales forecast earlier this month due to worries about the tariff war affecting demand in China. Many US companies, particularly in the tech sector, also depend heavily on China to drive revenue, and they’re suffering as a result of the US-China trade war. Chip maker Intel (INTC) also reported soft results in the fourth quarter of 2018 last week and gave weak guidance for 2019, mainly due to weaker demand in China.