Wall Street: Nvidia stock slides over 5% on profit taking, drags Nasdaq

Nvidia Corp. stock continued its decline for the third straight session on Monday dragging on the Nasdaq.

At 11:02 am EDT, the Nvidia stock was at $120.08, down $6.49 or 5.13 per cent.

On Friday, the stock had ended at $126.57.

The chip maker’s stock is falling mainly on profit taking by the investors. Its losses over the three sessions is more than 13 per cent.

Rival chip stocks including Qualcomm and the US-listed Taiwan Semiconductor Manufacturing dropped more than 2.5 per cent. The index of chip stocks was lower 1.3 per cent.

The frenzy around artificial intelligence (AI) boom had led to recent rallies in the Nvidia stock.

Last week, it had briefly overtaken Microsoft as Wall Street’s most valuable company.

US stocks

US stock indices were mixed on Monday as the investors are eyeing the Federal Reserve’s preferred inflation index PCE (Personal Consumption Expenditures).

At 9:54 a.m. ET, the Dow Jones Industrial Average was up 231.04 points, or 0.59 per cent, at 39,381.37, the S&P 500 was up 7.42 points, or 0.14 per cent, at 5,472.04, and the Nasdaq Composite was down 36.97 points, or 0.21 per cent, at 17,652.39.

The Personal Consumption Expenditures price index data is due on Friday.

In the week ahead, other crucial economic data such as final first quarter GDP numbers, home sales data, durable goods data, and weekly jobless claims are also slated for release.

Oil and gas stocks rose on Monday as oil prices hovered near their highest levels since April.

Shares of Exxon Mobil climbed 2.1 per cent and oilfield services provider SLB added 3 per cent.

Brent crude futures rose 5 cents to $85.29 a barrel. US West Texas Intermediate crude was around $81 a barrel.

The yield on the 10-year Treasury fell to 4.25 per cent from 4.26 per cent late on Friday.