DJT Bounces Back 21%: From “You’re Fired” to “You’re Hired”... Nvidia Slides 6%

Monday was a mixed bag on Wall Street, with the Dow Jones strutting its stuff like it just got a fresh pair of kicks, while the Nasdaq tripped over its own feet like everyone’s favorite President - thanks to one company we all can’t seem to get enough of.

Today’s post market issue we’re going to cover…

Nvidia’s 6% crash, marking its 3rd red day in a row… Investors running back to energy and financial stocks for cover… And Trump Media jumping 21% despite bleeding cash…

Let’s dive right in.

Here’s our heatmap for today.

The Dow climbed a solid 0.7%—more than 250 points—powered by energy and financial stocks.

Meanwhile, the Nasdaq took a hit, falling over 1% as Nvidia tanked by more than 6%, dragging the tech sector down with it.

Investors have been riding high on an AI-fueled rally, but Nvidia's recent tumble has everyone scratching their heads. After peaking last week, Nvidia is down over 11%, and this marks its third straight day in the red. It seems Wall Street's golden child is going through a bit of a rebellious phase.

On the macroeconomic front, all eyes are on Friday’s release of the Personal Consumption Expenditures (PCE) index. This inflation gauge is the Federal Reserve's favorite, and everyone’s hoping for a tame number. Economists are predicting a mere 0.1% rise, which would be the slowest since last November. If this pans out, it could ease fears about rate hikes and keep the Fed's itchy trigger finger at bay.

Adding to the week's excitement, President Biden and Donald Trump are set to debate on Thursday, which is guaranteed to deliver plenty of “like a dog” and “here’s the deal” moments and -  if we’re lucky - a full on fist-fight.

Meanwhile, traders are banking on a Fed rate cut in September, with the CME FedWatch tool showing high hopes for a dovish turn.

In the meantime, the Dow's performance today suggests investors are seeking stability in good old-fashioned energy and financial stocks. Chevron and Goldman Sachs saw impressive gains, each climbing over 2%.

So, while Nvidia’s nosedive might have tech nerds gnawing their fingernails, the overall market vibe is like cautiously ordering spicy food—exciting but wary of the consequences. Keep an eye on the PCE index and the political showdown this week—both could stir the pot in unexpected ways.

Stock.News Spikers of the Day

AgileThought, Inc.: [AGIL] [+137.35%]

Nubia Brand International Corp.: [NUBIW] [+106.35%]

Trump Media’s Bounces Back 21% From “You’re Fired” to “You’re Hired”

Today, Trump Media, trading as DJT on Nasdaq, saw a remarkable turnaround, with its stock skyrocketing 21% in a single day. It's like stumbling upon a $20 bill in last year's winter coat—unexpectedly delightful. After weeks of navigating choppy waters, the company closed at $33.52 per share, up from just over $27 on Friday.

The recent surge is a breath of fresh air for Trump Media, which had been facing scrutiny since former President Donald Trump's legal troubles began. Last week, when the SEC approved additional shares, things looked uncertain, but early investors seizing the moment to cash in their warrants turned the tide, pocketing a cool $69.4 million.

Despite these gains, short sellers, who were banking on the stock's decline, must be feeling like they just bet against Tom Brady in the Super Bowl—ouch! Borrowing and shorting this stock remain expensive endeavors, with short sellers reportedly down $178 million in mark-to-market losses this year alone, including a hefty $32 million from Monday's sudden surge.

Trump Media's journey since its March merger has been a wild ride. From a euphoric debut on Nasdaq to nearly hitting rock bottom at $22 per share, it's been quite the adventure.

(Source: CNBC)

Despite reporting a staggering loss of $327.6 million on revenues of just $770,500 in its latest quarterly earnings, the company still boasts a market capitalization close to $6 billion, fueled by the enduring allure of the Trump brand.

As traders eagerly await Thursday's presidential debate between Biden and Trump, DJT's volatile performance continues to captivate. 

Whether you're bullish, bearish, or just plain curious, watching Trump Media's maneuvers in the stock market is like seeing Trump's hair in a gust of wind—unpredictable and strangely fascinating.

Stock.News does not have positions in companies mentioned.