Nvidia (NVDA)
Nvidia has shed more than $500bn (£433bn) in market value since briefly becoming the world’s most valuable company last week after shares fell almost 7% on Monday and were in the red during pre-trading hours.
Many investors are thought to be taking profits after the semiconductor manufacturer’s valuation surged.
David Morrison, senior market analyst at Trade Nation, said: “Some profit-taking seems entirely reasonable given NVIDIA’s meteoric rise. The stock was up over 180% this year alone. But if it continues to lose ground, then there’s a danger of contagion, with selling spreading to other big tech names. If that were the case, then the market could be in for a deeper and more protracted pull-back.
“Yet, there are few indications that investors are even thinking along these lines.”
Another factor weighing on Nvidia is that CEO Jensen Huang has been selling stock this month, through a trading plan. That has focused attention on whether the stock was somewhat overvalued.
Read more: FTSE 100 LIVE: European stocks open mixed as $550bn wiped off Nvidia
Richard Hunter, head of markets at Interactive Investor, said: “The stellar rise of tech and AI-related stocks in particular inevitably gets to the stage where investors pause for breath and recalculate valuation levels.”
The AI darling recently became the third company ever to achieve a market valuation of more than $3tn, surpassing Apple (AAPL) and Microsoft (MSFT) to become the most valued company in the world.
Its market capitalisation has now dropped to $2.91trn (£2.29trn).
Outflows from US Bitcoin exchange-traded funds (ETFs) reached $1.3bn over the last two weeks as the price of the cryptocurrency continues to decline.
Bitcoin is stable above $61,000, after dropping to $59,200 during the early hours of the Asian trading day. The digital asset is now down 11% in June, but remains up 42% for the year-to-date, with the gains largely concentrated around the ETF approval.
However, according to data from Farside Investors quoted by the cointelegraph, the total outflow for Bitcoin ETFs hit $1.298bn over the last two trading weeks with Grayscale leading outflows at $517.3 million in the same period.
Read more: What is a stock split and why are big tech companies opting for it?
BlackRock’s Bitcoin ETF has been the only fund to post positive results, raking in $43.1mn worth of inflows over the last two weeks.
Bitcoin is not only under pressure from cooling demand for its ETFs but there is also growing uncertainty about the US Federal Reserve’s scope to cut interest rates quickly from a two-decade high.
Crypto analysts are giving a 14% chance of Bitcoin rebounding to $65K by the end of the week.
Shares of Trump Media & Technology Group are higher in pre-market trading, ahead of Thursday’s debate between President Biden and former President Donald Trump.
Trump Media stock is up by 21%, currently trading at $33.70 a share. The stock closed Friday at just over $27.
The company behind Truth Social has seen its stock price fall by nearly 50% in the roughly three weeks since a New York jury found Trump guilty of 34 felony counts of falsifying business records.
Read more: How to invest in AI as the rally continues
Trump owns 114,750,000, or about 64.9%, of the company’s stock. He cannot sell any of his shares until the end of September, when a post-merger lock-up period expires.
Shares in Airbus tumbled over 10% in early morning trading after the plane maker cut its annual profit forecast because of persistent supply chain disruptions and challenges in its space business.
The manufacturer expects to deliver 770 aircraft this year – down from the earlier forecast of 800 – while its production target of 75 A320neos monthly has slipped from 2026 to 2027.
Airbus said it is facing “persistent” and “specific” supply-chain issues, primarily affecting engines, aerostructures and cabin equipment.
It is also taking a €900m charge at its Space Systems, after discovering “further commercial and technical” challenges.
As a result, the aerospace and defence group now expects adjusted earnings before interest and tax of €5.5bn this year, down from a previous forecast of as much as €7bn.
“It might not have much impact on airlines, who have already indicated that Airbus has reduced scheduled deliveries. But aircraft manufacturing is proving tricky – just ask Boeing,” Neil Wilson, chief market analyst at Finalto, said.
“Demand is not the problem; quite the reverse. But if supply can’t keep pace and competition is so constrained, it ought to mean airline capacity doesn’t increase too much, which could keep fares higher for longer.”
Watch: Kenny Polcari to investors: Look for weakness to put more money to work
Download the Yahoo Finance app, available for Apple and Android.