Breaking News
Nvidia falls 5.5% as US delays MegaSpeed trade blacklisting
The Financial Times reported that the Commerce Department delayed adding MegaSpeed to a trade blacklist, and Nvidia lost $240 billion in market value. An S&P 500 fund lost $4 per $1,000, and the final blacklist decision could move chip stocks again.
At Tuesday’s close: S&P 500 −0.38%, Nasdaq-100 −0.60%, Dow −0.30%
Quick Read
- Nvidia shares tumbled 5.5% on Tuesday after the Financial Times reported a delay in adding MegaSpeed to a U.S. trade blacklist.
- The S&P 500 fell far less than Nvidia; Treasury yields also jumped, another possible weight on tech shares that day.
- The Commerce Department's final decision on MegaSpeed is still open and could move chip stocks again.
- Nvidia reports quarterly results on Nov. 17, when the company could address questions about trade limits.
How far did Nvidia's shares fall?
Nvidia (Nasdaq: NVDA) shares tumbled 5.5% on Tuesday, closing at $168.91. That compares with a previous close of $178.67.
Why it matters: The chip maker lost $240 billion in market value, leaving the company worth $4.1 trillion. Shares worth $67 billion changed hands during the session.
By the numbers: The stock now sits 29.4% below its 52-week high of $239.24. A 52-week high is the top closing price of the past year.
What did the Financial Times report?
The Financial Times reported that the U.S. Commerce Department has delayed putting MegaSpeed on a trade blacklist. Such a list limits which U.S. goods and technology a named company can buy.
The delay is not a final decision. Why the department held off, and when it may decide, are the open questions.
Trade rules matter for Nvidia because its chips are among the most closely watched U.S. technology exports. The shares fell on the day the report ran.
Did the rest of the market fall too?
The broad market fell far less. The S&P 500, the index of large U.S. companies that many retirement funds track, fell 0.4% to 7,520.93.
The tech-heavy Nasdaq-100 fell 0.6%, and the Dow fell 0.3%. The technology sector fund (XLK) slid 1.1%.
Treasury yields also jumped on Tuesday, which may have added pressure on tech shares. The 10-year yield rose 10 basis points to 4.98%, and the 2-year yield climbed 17 basis points. Higher yields can make growth companies' future profits look less valuable today.
Even after Tuesday's drop, the S&P 500 is up 2.0% for the week so far.
What comes next for Nvidia?
What’s next: The Financial Times report describes a delay, not an end. The question is whether the Commerce Department adds MegaSpeed later, and that decision could move chip stocks again.
Nvidia reports quarterly results on Nov. 17. The company could address trade questions then. Its comments may show whether export rules weigh on its outlook.
Inflation data could also move yields. The Producer Price Index for October, which tracks prices businesses receive, is due Nov. 13 at 8:30 a.m. ET.
For readers
What it could mean for you: If you own Nvidia shares directly, this story reaches you in full, with no other holdings to cushion it. Trade-policy news like the Commerce Department's MegaSpeed decision may keep moving the stock while the final outcome is open. Nvidia's results on Nov. 17 could show how the company talks about trade limits. If you hold Nvidia only through a broad index fund, the effect is spread across many other companies, as Tuesday's much smaller S&P 500 move showed.
Questions and answers
Why did Nvidia stock fall on Tuesday?
The shares fell on the day the Financial Times reported that the U.S. Commerce Department delayed adding MegaSpeed to a trade blacklist. Treasury yields also jumped that day, which may have added pressure on tech stocks.
What is a U.S. trade blacklist?
It is a government list of companies whose access to U.S. goods and technology is restricted. The Financial Times reported that the Commerce Department has put off adding MegaSpeed to such a list.
When does Nvidia report earnings?
Nvidia's next quarterly results are scheduled for Nov. 17. The company could address questions about trade limits then.
The numbers
| Nvidia (NVDA) price | $168.91 |
|---|---|
| Nvidia (NVDA) change | −5.46% |
| Nvidia (NVDA) market value | $4.1 trillion |
| Nvidia (NVDA) 52-week high | $239.24 |
| S&P 500 change | −0.38% |
| 10-year Treasury yield | 4.98% |
Tuesday’s close
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The WallStreetDigest daily arrives at 6:15 a.m. ET every trading day.
Not investment advice.