- Nvidia stock turned south on Tuesday as risk-off rules.
- Wall Street plunged to fresh November lows at the end of the month.
- NVDA is set to end the year at all-time highs.
Update: Nvidia (NVDA) fell 2.10% on Wednesday, correcting from four-day highs to settle at $326.76. Shares of semiconductors star Nvidia bore the brunt of the broader market sell-off after Nasdaq Composite Index (NASDAQ) tumbled 1.55% on US Federal Reserve Chair Jerome Powell’s hawkish comments. Powell underscored inflationary concerns, adding that speeding up of tapering could be on the table at the central bank’s December meeting. Adding to the dour mood, the Omicron covid variant concerns intensified on Moderna Inc.’s warnings against the vaccine efficacy.
Nvidia surged higher on Monday as risk-on sentiment bought up most stocks, but particular attention was paid to clear 2021 winners. This was not a case of Cyber Monday bargain hunting, rather investors overlooked stocks that have been struggling and instead bought up some already high-flying names. Nvidia is already nearly up 140% year to date, but that did not deter investors piling into the name on Monday. Laggard stocks were punished, Peloton (PTON) for example slumped over 4% on Monday. This was a time for risk to be taken but only into strong stocks. Momentum creates more momentum.
Nvidia (NVDA) stock news
Nvidia announced on Monday that it will participate at Deutsche Bank's Auto Tech Conference on Thursday, December 9, while the company will also attend JPMorgan's Tech/Auto Forum on Wednesday, January 5. Nvidia is due to speak today at the Credit Suisse Technology, Media & Telecom Conference and tomorrow at the Wells Fargo TMT Summit. Some headlines of note may be forthcoming from that suite of conferences. Also to note is that Nvidia goes ex-dividend tomorrow, December 1. The Nvidia dividend of $0.04 will be paid on December 23.
Nvidia (NVDA) stock forecast
The drive to end the year above $350 is still on track after Monday's powerful recovery. We should also take some credit for identifying the $310 support last week. This is where Nvidia bottomed out on Thursday and Friday. It is the top of the flag formation from the daily chart further down. From the 30-minute chart, we can see the concentration of volume from $328 to $310. Breaking out of this range then sees the next high volume zone around the $302 to $294 range.
The $310 level from the daily chart is holding the current potential for a move to $350. Once below, all bets are off, and the stock becomes neutral in the short term. The bearish divergence in the Relative Strength Index (RSI) is a bit concerning as we would like to see this broken to confirm any move to $350.
NVDA 1-day chart
Update: Nvidia (NVDA) is down over 3% heading into the close and, trimming most of its Monday's gains. Wall Street plummeted following comments from US Federal Reserve Chair Jerome Powell. He said that it is time to retire the term "transitory" for inflation."Risk of more persistent inflation has risen," Powell added. He also noted that supply chain issues are one of the reasons for persistent inflationary pressures. Market participants fear that measures to contain the latest coronavirus variant, may exacerbate such issues and further delay the economic comeback. At the time being, the DJIA is down 660 points, while the Nasdaq Composite loses 1.60%.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.