Investing.com – U.S. stocks struggled on Friday as technology stocks took a break for a second day in a row as Nvidia shares continued to decline from a recent record high.
By 1:26 pm ET (1726 GMT), shares were down 14 points, or 0.1%, trading 0.2% lower and down 0.2%.
Nvidia drops to third place in ranking of most valuable companies
NVIDIA Corporation (NASDAQ:) shares fell more than 2%, extending losses from the previous day, as investors appeared to be taking profits on the chipmaker’s runaway rally that saw it briefly usurp Microsoft (NASDAQ:) on Tuesday. as the most valuable company.
In recent trading, Nvidia was valued at $3.14 trillion, just shy of Apple’s (NASDAQ:) $3.23 and Microsoft’s $3.33 trillion valuations.
Despite the decline in Nvidia shares, general enthusiasm for the use of artificial intelligence should mean underlying demand for the stock remains strong.
Boeing is reportedly closing in on a deal to buy Spirit Aerosystems; Carmax rejoices at his profits
Boeing (NYSE:) shares rose after Reuters reported that the plane maker was close to agreeing to a buyout of Spirit Aerosystems, its former subsidiary, whose shares soared more than 5%.
Earlier this year, Boeing began talks to buy out one of its main suppliers, which it spun off in 2005, but ran into difficulties due to Spirit’s work for Boeing’s main rival Airbus.
The European group has threatened to block any deal involving Boeing parts for late models.
CarMax (NYSE:) shares rose 1% after the used car retailer’s first-quarter earnings came in better than expected, even after falling 33%, while its sales missed estimates.
Manufacturing and services activity rose unexpectedly in June
The second Purchasing Managers’ Index reading for June was higher than economists had expected, highlighting the strength of the economy and that sooner or later interest rates are not a matter of urgency. Data for May also exceeded economists’ forecasts.
Several Fed officials expressed caution about cutting rates too early, wanting more evidence that inflation has been tamed before the central bank agrees to ease monetary policy.
President of the Federal Reserve Bank of Richmond, emphasized this on Thursday, emphasizing the need for greater clarity on the path of inflation before considering interest rate cuts.
“My personal view is let’s gain more conviction before we move forward,” Bakin told reporters after an event in Richmond on Thursday.
Volatility seen as a ‘triple whammy’
The stock session is expected to end turbulently as triple witching – when stock options, stock index futures and index options contracts expire on the same day – typically causes volatility as investors exit old positions and take on new ones.
Peter Nurse contributed to this story.