Investing.com — The S&P 500 ended its three-week winning streak on Friday, despite a lower closing as Nvidia took a breather from its recent surge.
By 16:00 ET (20:00 GMT), shares were up 15 points, or 0.04%, before closing down 0.1% and down 0.2%.
NVIDIA falls to third-largest company by market capitalization
NVIDIA Corporation (NASDAQ:) fell 3%, snapping an eight-week winning streak after investors appeared to lock in profits on a surge that saw the company briefly overtake Microsoft (NASDAQ:) as the most valuable company by market capitalization on Tuesday.
NVIDIA’s market cap in recent trading was $3.14 trillion, just below Apple’s (NASDAQ:) $3.23 trillion and Microsoft’s $3.33 trillion.
Despite Nvidia’s temporary dip, general enthusiasm for artificial intelligence applications should mean underlying demand for the stock remains strong.
Boeing reportedly close to deal to buy Spirit AeroSystems; CarMax rejoices at profits
Shares of plane maker Boeing (NYSE:) rose slightly, jumping more than 5% after Reuters reported that the company was on the verge of agreeing to buy back former subsidiary Spirit AeroSystems.
Boeing earlier this year began talks to buy back one of its major suppliers it separated from in 2005, but faced difficulties because Spirit Airlines did work for Boeing’s biggest rival, Airbus.
The European group had threatened to block any deals involving Boeing making parts for its latest models.
Used-car retailer CarMax (NYSE:) shares closed just above flat after the company reported better-than-expected first-quarter profit despite a 33 percent decline in sales that fell short of expectations.
Software maker Asana Inc (NYSE:) closed up more than 15% after the company announced a $150 million share repurchase plan.
Manufacturing, service activity beat expectations in June
The second set of consumer price index and purchasing managers’ index readings for June beat economists’ expectations, underscoring the strength of the economy and the lack of urgency in raising interest rates soon. Data for May also beat economists’ expectations.
Fed officials have been cautious about expecting a rate cut too soon and want more evidence that inflation is under control before the central bank agrees to ease monetary policy.
Federal Reserve Bank of Richmond President Jonathan Brown underscored that point Thursday, stressing that the Fed needs greater clarity on the path of inflation before considering cutting interest rates.
“My personal view is, let’s get more certainty before we act,” Bakin told reporters Thursday after an event in Richmond.
Focus on volatility caused by “triple witching”
Equities are expected to end the session with wild swings as triple witching — a phenomenon in which stock options, stock index futures and index options contracts expire on the same day — typically leads to increased volatility as investors liquidate old positions and take on new ones.
Peter Nurse contributed to this story
