Nvidia's biggest stock market impact 'may be behind' us

The first week of September trading took a toll on Nvidia (NVDA) shares, which is currently trying to recover losses, and weighing on the major averages (^DJI, ^GSPC, ^IXIC) as the chip giant struggles to live up to its sky-high expectations.
Citigroup head of US equity strategy Scott Chronert joins Morning Brief to discuss Nvidia's outlook and how investors can prepare for a pullback.
Chronert notes that while Nvidia is expected to see 40% earnings growth in 2025, its impact on the tech-heavy indexes, particularly the S&P 500, will start to decrease. "What we're looking at is the pattern over the past 15 months, going back to May of '23, when they first gave us a significant upside surprise and guidance raise. What's happened since then is that they've continued to raise guidance with each quarter, but that stair-step function is decelerating," he explains.
As Nvidia's guidance lifts continue to decelerate, Chronert argues, "what this tells us is that it's still a really important stock for index direction. At 6% plus of the index, it's going to be. But in terms of the more significant upside that it's contributed to the S&P, we think that certainly lessens from here."
He adds that when Big Tech and the Magnificent Seven dipped to about in mid-July, he encouraged investors to "play 'growth' as defensive around concerns of economic weakening." He calls this strategy "a pretty good playbook" as his year-end target for the S&P 500 sits at 5,600. He notes that if the index falls closer to 5,200, "your risk reward begins to get much more attractive going into the year-end."
#youtube #news #stockmarket

About Yahoo Finance:

Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.

- Follow Yahoo Finance on social:

[JunkRemovalDeliverySolutions]

NVDA is the stock of the year. It will recover faster than any other stock in history

[Davidson-ol]

Hit $200k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months.

[ShahShubham-ygni]

From my observation and historical market pattern, there might be a bit of turbulence in the market coming up, but here's the deal: Trying to guess what's going to happen next is less important than spreading your bets when trading and thinking long term. It's not about guessing the market's next move; it's about playing it smart and steady...managed to grow a nest egg of around 180k to a decent 632k in the space of a few months... I'm especially grateful to Harry’s Dent, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.

[danielquinn]

This year I have experienced more gains than losses in the crypto/stock market, thanks to some knowledge I acquired from my financial advisor, I have managed to flip the market

[emmahomes]

NVSA is the best stock i have seen in the past 10 years. I m thinking from 118 to 1000 in the next 5 to 10 years
Its an easy buy

[LucilleAlvarez]

I often wonder how successful investors are able to make millions of $$ from trading stocks. Im completely new on this area of investing. Long story short I have a couple thousands saved up which i want to invest for long term and I know this sounds a bit dull but, I would like to know what advice you could give to start my investing journey.

[scrutch]

So much warm air. Wallstreet just has to cover their yen positions and selling their biggest gains to do so

[PedestrianPony]

Summary: "Nvidia is an incredibly strong stock and worth buying for strong return but it's not going to be unmitigated euphoria like it has been the past year." lmfao

[paulo]

Bruh what you saying is just noice and narrative you guys create! The future is heading to computing power and data

[CatsHeavenRescue]

I just bought 20 million shares . I had a dream that it will be up 200% soon.

[emmahomes]

yes
NVDA is going to 200 dollars by next week get ready

[emmahomes]

buy now
NVDA is going to 200 dollars by next week get ready

[spatialmemory]

NVDA headed to 80s.
Watch and learn.
Good luck.

[UnneVicice]

As an investment enthusiast, I often wonder how top-level investors are able to become millionaires through investing. I have a significant amount of capital to start with, but I'm unsure about the strategies and direction I should take to help me generate substantial profits like some people are this season.

[OttawaWillsonsCompany-Ca]

We are currently in the jaws of the worst bear markets I have seen, the average stock has been cut in half, and the only way to make money this year has been to either short or to trade long in very short time frames. I'm still at a crossroads deciding if to liquidate my dipping $117k stock portfolio, what’s the best way to take advantage of this bear market?