Nasdaq rises, Dow falls, while Nvidia shares jump

The Dow Jones Industrial Average (^DJI) reversed from Monday’s gain to close Tuesday’s session down more than 290 points. On the other hand, the Nasdaq Composite (^IXIC) jumped 220 points, or 1.26%.

Market dominance over time Julie Hyman Explains why Nvidia’s (NVDA) drag-on effect in tech-heavy indexes is evident in the outperformance in the S&P Equal Weight Index (^SPXEW) and Nasdaq 100 (^NDX), while Jared Blicker Here’s a summary of the gains seen by major tech stocks today, including Nvidia.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Luke Carberry Mogan,

Video Transcript

Another disagreement between Dow and NASA, but they reconciled, they switched places.

So today the Dow is down about 296 points, which is roughly three-quarters of 1%.

S and P are still hovering in the middle at around 4.1% out of 10.

And then there was NASA, which was the day’s biggest winner, gaining nearly a quarter of a percent.

Now, another trend that we are seeing in recent times is the widening of the steps.

Well, today, the S&P Equal Weight Index is dramatically underperforming the S&P 500, which leads us to believe once again that it is a small number, well, not small, a small number of very large, very large growth mega caps that are helping lead the gains in today’s session.

You can see that even in the NASDAQ 100, which is outperforming today, you’re still seeing yields around four quarters of a percent.

So this is something which is not hampering in any way the gains that we are seeing today but it is basically a boost.

Jared, you know, this term is interesting.

It has been gaining strength for the last five days.

It hasn’t progressed much.

So, this is just a preparation to take a step forward and that in itself could be a catalyst.

But I’m told I have a minute here.

So I want to show you what the S&P 500 Market Cap versus Equal Weight has done over the last few days.

And so, the cyan line here, this is equal weight and you can see that it was rising yesterday, but today it has fallen.

Meanwhile, the S&P 500 (the usual way we calculate it, based on market capitalization weightings) has been trending down, though it is up slightly today.

And you can also see an interesting dynamic in the NASDAQ versus the Dow, here the Dow is in green, the NASDAQ is in red and again, this is over five days.

So we’ll have to see if something comes out of this or not.

But I’m going to talk in about 30 minutes about one type of change in leadership that we’re seeing and it may be permanent, it may not.

This is the NASDAQ 100.

What else?

All those doomsayers, those negative people who thought the market was going to zero, today NVIDIA is up 6%, Meta is up 2%, up 2%.

And when you look at sectoral activity, you see a much bigger increase than before in communication services, which grew by 1.14%.

And then XL K which is tech, is up 1.8% and nothing else is really doing better than that today.

So there was real turmoil in the markets, with both real estate and materials falling by more than 1%.

The utilities sector also declined by about 1%.

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