Stock Market Today: Dow Jones Plunges 900 Points In Weak Market; Nvidia Plummets As Apple Slides On Warren Buffett Cut (Live Coverage)

The Dow Jones index trimmed steep losses in afternoon trades Monday after some welcome economic news brought a little respite, but blue chips slipped below their 50-day moving average and sank further below the psychological level of 40,000. Both the Nasdaq and the S&P 500 tanked as well, sinking further below their 50-day lines on the stock market today.

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The Dow Jones Industrial Average was down 2.3%, or more than 900 points in recent action. The S&P 500 lost 2.5% while the Nasdaq plummeted 2.8%. The Nasdaq was in danger of sinking below its 200-day moving average, but was finding support at that level.

Nvidia (NVDA) trimmed its losses but still traded 5% lower after reports that the artificial intelligence chip leader is delaying its next Blackwell chip due to a flaw in the design. Other Magnificent Seven companies that will likely be affected include Google-parent Alphabet (GOOGL), Microsoft (MSFT) and Meta Platforms (META). All placed orders for the new chip. Nvidia was the worst performer in the Nasdaq 100, after Dow leader Intel (INTC).

Earnings from other artificial intelligence plays are due this week, with Palantir (PLTR) reporting after the market close and Super Micro Computer (SMCI) on Tuesday. Palantir is testing its 200-day moving average ahead of its report on the stock market today. Both stocks are below the 50-day moving average.

Aris Water Solutions (ARIS) triggered a key sell rule as it fell more than 7% from a buy point of 16.31. Napco Security Techs (NSSC) has also fallen further below the 50-day moving average after closing below it on Friday.

12:14 p.m. ET

Stock Market Today: Finance, Chip Play Flash Sell Signals

Some finance stocks were among the many that triggered sell signals. Ares Capital (ARCC) fell below a base it was forming. Shares were already below the 50- and 200-day lines ahead of Monday’s plunge. Main Street Capital (MAIN) fell decisively below the 50-day line after closing just below that level on Friday. Shares are more than 7% below a breakout at a 51.10 buy point.

Among chip plays, Diodes (DIOD) fell another 4.5% and further below the 200-day line on the stock market today.

10:41 a.m. ET

Services Industry Growth Stronger Than Expected

Economic data brought some relief on Monday. The Institute for Supply Management’s report on activity in the services industries for July rose to 51.4 vs. views of 51, according to Econoday. A reading below 50 would indicate contraction. Traders are now betting on an 84.5% chance of a 50-basis-point rate cut in September, according to the CME FedWatch Tool.

Volume on the New York Stock Exchange and on the Nasdaq was higher on the stock market today compared with the same time on Friday. Decliners dominated the action on both exchanges.

During Friday’s sell-off, the small-cap Russell 2000 held at the 50-day moving average, but the index gapped down 3% on Monday and broke below the 50-day line. The Innovator IBD 50 ETF (FFTY) suffered a 2% loss.

The yield on the benchmark 10-year Treasury note was nearly unchanged at 3.78%. The yield curve may finally turn into a positive slope. According to a Barron’s report, stocks have risen 2.6%, 8.3% and 12% in the 3-, 6- and 12-month period after an inversion ended.

Dow Jones Stocks

Apple (AAPL), Intel (INTC), Amgen (AMGN) and Amazon.com (AMZN) were among the worst performers in the Dow.

Apple fell 4%. Warren Buffett’s Berkshire Hathaway (BRKB), which reported earnings on Saturday, disclosed it had sold 49.4% of its stake in Apple. The personal technology company remains the top holding in the Berkshire portfolio.

Amgen and Caterpillar (CAT) will report earnings on Tuesday while Disney (DIS) reports Wednesday. Amgen is trying to hold in a buy zone above a buy point of 322.60, according to IBD MarketSurge chart analysis. Disney is in a downtrend while Caterpillar has undercut its base and the 200-day moving average.