The adjustment phase of NVIDIA shares and its impact on the S&P 500
Recent trends in NVIDIA stock are shaking up the market. NVIDIA's stock price fell 13% in the past 3 business days, and the total market value of about 68 trillion yen disappeared. This movement has had an impact not only on NVIDIA, but also on other semiconductor brands and the S&P 500 as a whole. The background of the adjustment phase and its impact on the S&P 500 will be examined.
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✔️ NVIDIA stocks plummeted
NVIDIA's stock price fell 6.7% on 2024/6/24, falling for 3 consecutive business days. The 3-day rate of decline reached 13%, and the total market value disappeared by about 430 billion dollars (about 68.63 trillion yen). This is the largest loss of total market value for 1 company in 3 days ever.
✔️ Impact on the S&P 500
NVIDIA is the main stock in the S&P 500 stock price index, and its stock price fluctuations have a major impact on the index as a whole. We will analyze the impact of the sharp drop in NVIDIA shares on the S&P 500.
1. Overall decline in the index
The fall in NVIDIA's stock price will reduce the overall performance of the S&P 500. NVIDIA in particular occupies an important position in the technology sector, so its impact cannot be ignored.
2. Impact on investor sentiment
NVIDIA's decline will adversely affect investor sentiment, and there is a possibility that selling pressure will be applied to other technology stocks and growth stocks. As a result, there is a risk that the S&P 500 as a whole will have a short-term downward trend.
3. Reevaluating valuations
Expectations for AI-related technology were behind the fact that NVIDIA's stock price was soaring, but the rapid rise has given rise to concerns about valuation. There is a possibility that investors will review other high valuation stocks as an opportunity for this adjustment.
4. Ripple effects on other sectors
NVIDIA's stock price adjustments will spread not only to other semiconductor stocks, but to the technology sector as a whole, and there is a possibility that it will have an impact on an even wider range of market sectors. Technology stocks in particular occupy an important weight in the S&P 500, so their impact is significant.
✔️ Investor Response
In response to NVIDIA's adjustment phase, investors need to consider the following strategies.
・Diversification of portfolios
It is important to diversify portfolios to avoid excessive dependence on specific sectors or stocks. In particular, it is necessary to consider adjustment risks for high valuation stocks. In particular, portfolios with only stocks are unforgivable, and it is necessary to allocate them to currency, crypto assets, bonds, and commodities.
・Keep an eye on market trends
It is necessary to closely monitor trends and economic indicators in the S&P 500 as a whole and make appropriate investment decisions. In particular, it is important to pay attention to trends in the semiconductor sector and technology sector.
✔️ Conclusions
NVIDIA's entry into an adjustment phase could have a major impact on the semiconductor sector, the technology sector as a whole, and even the S&P 500 as a whole. It is important for investors to calmly analyze this situation and review portfolio diversification and valuation. Furthermore, it is required to closely monitor future market trends and take appropriate measures. It is important to minimize risk and aim for stable investment results by determining the impact of NVIDIA adjustments on other stocks and the market as a whole and responding flexibly.
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☆ラジエル★ : What I'm saying is obvious, and it's basic for diversified investment. However, it is impossible for anyone to predict the market. It's no good to be dismayed by the trend of Mr. Market (drunkard's Chidori). The investment method is different from mine, so it doesn't suit me, but in the end, it's the company's earning power. If gross profit margin rises every year, stocks will return and rise again. If you do a company analysis and have future potential, isn't it OK to hold on for a long time? I'm buying it now. buy. It became a learning experience. thank you.
教養チャンネル OP ☆ラジエル★ : Thanks for commenting
Steadily doing things that are taken for granted is surprisingly difficult, isn't it?
I want to continue working hard together! Thank you very much ♪