Day Traders Diary

8/7/24

The major averages reversed course, closing on their lows as the recent correction does not look to be over. The Dow Jones Industrial Average fell 234 points, or 0.60%, to 38,763. The S&P 500 declined 40 points or 0.77% to end at 5,199 while the Nasdaq Composite fell 171 points or 1.05% to 16,195.

At session highs, the Dow surged 480.30 points, while the S&P 500 jumped 1.73%. The tech-heavy Nasdaq was up more than 2% at one point.

A rollover in Nvidia and the rest of the big cap techs was not a good sign in the afternoon. Super Micro Computer was a dog today down 20% after missing estimates. All the chips were lower.

There were some winners today. Fortinet, Shopify, Axon and Devon Energy were higher on earnings.

In the bond market, the benchmark 10-year Treasury yield rose 5 basis points to 3.94%. This marked a return to its level prior to the weak jobs numbers on Friday that raised concerns of an economic downturn.

The Cboe Volatility Index, known as Wall Street's "fear gauge," rose to nearly 28 after falling to as low as 22 earlier on Wednesday. The VIX was as high as 65, jumping from 18 one week ago. Volatile times.