Nvidia Loses $277 Billion In Market Value… Analysts Sound The Alarm On Bitcoin’s 10% Slump

Today's market set off like rockets aiming for the stars but decided to take a snack break and nap instead.

The S&P flirted with 5,500 before settling down 0.2% at 5,473, while the Nasdaq ended down almost 0.8% in an disappointing day overall.

Today’s issue covers: 

Nvidia dropping 8% intraday causing it to lose $277 billion in market value…

How one European country is putting pressure on the Federal Reserve…

A 59,000% pharmaceutical stock move…

And why analysts are convinced Bitcoin’s 10% drop will lead to a stock market crash…

Let’s dive right in.

Here’s where today’s heatmap landed.

Nvidia, the tech superstar and go-to comfort for all the Tesla bros, decided to take a breather with its share price today. After a meteoric rise that made it the world's most valuable company, the stock dropped more than 8% and ended the day down 3%. At one point the intraday swing erased around $277 billion of market value. But don't worry, it's still up a whopping 170% this year.

The S&P 500 flirted with the 5,500 mark, a historic high, but ultimately closed down 0.2% at 5,473. The Nasdaq, which had been strutting its stuff, took a sharper dip, ending down almost 0.8%. Meanwhile, the Dow Jones was the life of the party, adding nearly 300 points to close up 0.7%.

Wall Street had a bit of a struggle bus moment after the holiday. The excitement over AI, particularly Nvidia’s rocket ship rise, has been the big story. But Thursday’s dip woke every trader up from their wet dream and showed us that it’s not 2021 again.

Adding to the drama, global central banks were making moves. The Swiss National Bank cut rates for the second time this year, and while the Bank of England held steady, hints of a summer rate cut were in the air.

Here in the U.S., everyone’s betting that “Sir Hikes-a-Lot” (aka Jerome Powell) will be cutting rates by September. Jobless claims came in slightly better than expected, dipping to 238,000, giving a small glimmer of hope in an otherwise sluggish economy.

So, while Thursday had its ups and downs, it’s clear the market is still buzzing with energy.

Stock.News Spikers of the Day

Navidea Biopharmaceuticals: [NAVB] [+59,900%]

COMSovereign Holding Corp.: [COMS] [+130.95%]

Bitcoin’s 10% Drop Signals S&P Could Be Next?

If you’ve drunk the Michael Saylor kool-aid and hold some Bitcoin… I’m sure you’ve realized that its price is kinda like that quirky, unpredictable cousin at your family reunion, always ready to drop a bombshell as soon as you start getting comfortable around him. Well, it just did. A 10% drop since June 7th has financial strategists like Stifel's Barry Bannister sweating bullets about the stock market. He’s not alone in his concern; other Wall Street analysts are raising their eyebrows too.

Bannister points out that Bitcoin and the Nasdaq 100 have been moving in sync since 2020, like dance partners at a tech-savvy ball.

But with Bitcoin slipping and sliding lately, it’s a sign that the stock market might also take a tumble. Like a canary in the coal mine, but a very expensive, digital canary.

Despite Bitcoin’s belly flop, mega-cap tech stocks like Nvidia and Apple are still doing the cha-cha to new record highs, despite their underwhelming performance today. Yet Bannister suggests the stock market could soon follow Bitcoin’s lead and hit the brakes. “Bitcoin’s slump signals an imminent summer correction for the S&P 500,” he notes.

Meanwhile, Katie Stockton from Fairlead Strategies is also keeping a close watch on the gap between soaring tech stocks and stumbling Bitcoin. She’s concerned that the Nasdaq 100’s relentless climb might be due for a reality check. “When Bitcoin pulls back and Nasdaq keeps climbing, it’s like watching someone juggle knives – you know it can’t end well,” Stockton said.

Adding more spice to the pot, the Federal Reserve might keep interest rates higher for longer to tackle persistent inflation. Bannister predicts this could further spook the market. He’s got his eyes on Big Tech stocks, especially Nvidia, which might be the first to feel the pinch. “Nvidia led the charge up; it might lead the charge down too,” he quips.

But hold your horses, Bannister admits he could be early with his doom-and-gloom prediction. Bubbles have a knack for defying expectations before they burst spectacularly. He even suggests the S&P 500 might hit 6,000 before taking a nosedive to around 4,800 by mid-2026. “It’s like a soap opera with a cliffhanger ending every season,” he muses.

In essence, while the stock market is enjoying a sunny spree, with investors partying like there’s no tomorrow, the Bitcoin warning suggests they might soon be reaching for the panic button.

Stock.News has positions in Tesla, Apple.