Chip stocks fall with Nvidia after data center rev disappointment
Investing.com -- The U.S. stock market has witnessed another round of significant losses on Friday with the S&P 500 plummeting over 3%, pushing the weekly losses beyond 6%. This marks the most severe drop since March 2020.
At this stage, the possibility of a minor rebound remains due to the fragile investor sentiment. Both the United States 10-Year and USD/JPY showed no significant change in the early trading.
The future trajectory of the S&P 500 until the year-end will be significantly impacted by the market’s reaction to President Trump’s tariff announcements on Thursday, as per Lori Calvasina, a strategist at RBC.
Calvasina suggests that if the S&P 500 falls significantly below its mid-March low, a further decline into the 4,900-5,300 range due to a "growth scare drawdown" is probable.
This scenario would make her bearish case of 5,500, a 3% drop from Wednesday’s closing, a more suitable year-end target than her current base case of 6,200.
"We confess that we were feeling better about the ability of the S&P 500 to defend its mid-March low coming into Wednesday, only to have that glimmer of optimism dissipate again on Wednesday evening," she wrote in a note to clients today.