Nasdaq closes lower on weak Nvidia amid lack of direction ahead of job report re

Nasdaq closes lower on weak Nvidia amid lack of direction ahead of job report release

The U.S. stock market started slightly higher despite sluggish economic indicators and the impact of the ECB's interest rate cut. However, major indexes also weakened due to the news that the ECB will be cautious about further rate cuts and Nvidia (-1.14 percent), which rose sharply the previous day. Since then, amid a lack of direction, the Nasdaq has fluctuated due to stock changes ahead of the announcement of the employment report, and the Dow has closed mixed, with the Dow rising (+0.20 percent, Nasdaq -0.09 percent, S&P 500 -0.02 percent, Russell 2000 -0.70 percent, Philadelphia Semiconductor Index -0.86 percent)

* Variables: Economic indicators, ECB monetary policy meeting, Nvidia

The number of new unemployment claims in the U.S. stood at 229,000, slightly exceeding the 221,000 announced last week, confirming that the job market is still solid but gradually slowing down. The number of mass layoffs (restructuring) also fell slightly from the 6.5 million health insurance announced last month to about 64,000. Job cuts have not changed much as companies plan for the second half of the year, but the recent job postings have hit the lowest level in a decade, indicating that the solid job market is stagnating. In particular, the IT industry is leading the mass layoffs, while the automobile industry is also rapidly reducing its workforce. In general, the market is interpreted as AI-induced job cuts and job cuts due to the economic slowdown. Although the job market has slowed, the dollar and interest rates have remained flat, reflecting uncertainty about further rate cuts by the ECB

Meanwhile, the ECB cut its policy rate by 25 basis points. Significant progress in slowing inflation and concerns over a slowdown in the economy lead to a rate cut. However, it did not promise a path to further rate cuts, and said it would decide based on data. In April, there were phrases suggesting a rate cut in June, but this time the phrase has disappeared. Markets are expected to see a re-emergence of phrases suggesting a cut in September in July. Meanwhile, the ECB reported that it raised the eurozone's GDP growth rate for the year from 0.6% to 0.9%, and that prices rose 0.2%p to 2.5%, exceeding market expectations. On the news, the euro strengthened against the dollar despite interest rate cuts, and the rise in German government bond rates also accompanied by a rise in U.S. government bond rates.

Meanwhile, Nvidia (-1.14%) rose sharply ahead of the stock split, exceeding 3 trillion dollars in market capitalization the previous day, and started strong again today. However, it turned downward after the market started, putting pressure on major indexes. There was news of an anti-trust violation investigation, and the U.S. Federal Trade Commission (FTC) is investigating Opecn AI, MS (+0.12%), and the Justice Department is investigating Nvidia for violating the anti-trust law. On top of that, the news that CEO Jensen Huang will sell 600,000 shares ($740 million) by March next year is burdensome. Of course, changes continue to change, with buying still shrinking the fall late in the market due to expectations for the inclusion of the Dow after the stock split

* Features: Nvidia turns lower

Nvidia (-1.14%) was strong, exceeding $3 trillion in market capitalization the previous day, but today it fell along with the news of its anti-trust investigation and the sale of some of Jensen's shares along with Microsoft (+0.12%) and OpenAI. Nvidia's decline also led to declines in Marvell Tech (-2.44%), Super Microcomputer (-3.07%), Micron (-2.72%), Broadcom (-0.87%), AMAT (-0.73 percent), Lamb Research (-0.98 percent), and Western Digital (-2.15%). The Philadelphia Semiconductor Index, which had surged 4.5 percent the previous day, fell 0.86 percent

Tesla (+1.65%) is bullish on the analysis that it will be stronger in the second half of the year as production of Cybertrucks increases and preparations for the launch of robotaxi. On top of that, the analysis that delivery is expected to increase this year is also positive. Also bullish is the news that the new FSD program has been distributed to employees. Car sharing company Lyft (+0.84%) is bullish on the announcement that it will see a 15% increase in total bookings by 2027. Uber (+4.68%) is also bullish. Robinhood (+6.44%) is bullish on the announcement that it will buy European cryptocurrency exchange Bitstamp for about $200 million. Tokusain (+1.98%) is also bullish on the announcement of better-than-expected earnings and guidance, but after its second-quarter billing fell by around 4% after-hours

Sailsposs (+2.63 percent) is bullish on the announcement that it will open an AI center in London. Enterprise software company Splunk (-15.13 percent) fell on news that customers were delaying purchases to cut costs. Sportswear retailer Lululemon (+4.79 percent) rose on the news of a surge in sales in China and a $1 billion increase in share buybacks. Nike (+1.48 percent) is also bullish on the news. The move comes as plans to spin off Illumina (+7.42 percent), a provider of genetic analysis solutions, are completed.

Costco (+1.00%) rose after the company reported better-than-expected May same-store sales. In particular, the composition cost of e-commerce rose 15.4%. The impact of Dollar Tree (-1.76%) which recently cut its guidance continued to weaken Dollar General (-3.64%) as it signaled a slowdown in consumption centered on low-income families. Novavex (-6.75%) fell after it announced in September that it could meet FDA recommendations for a new COVID-19 vaccine. It is estimated that profit-taking sales have been released because of the recent surge in related expectations. Pfizer (-2.54%) also fell

* South Korean stock market-related figures

The MSCI Korea Stock Exchange ETF rose 0.79% following a 1.89% increase in the previous day, and the MSCI Emerging Index ETF rose 0.50% today following a 1.61% increase in the previous day. The Philadelphia Semiconductor Index fell 0.86% today after losing 4.52% the previous day. The Russell 2000 index also fell 0.70% today after losing 1.47% the previous day. The Dow Transportation Index also fell 0.28% today, behind a 1.18% increase in the previous day. Night futures rose 0.72% the previous day and were closed today. NDF dollar/won exchange rate, which affects the dollar/won exchange rate, which closed at 1,373.00 won last Wednesday, reached 1,363 won.

*FIC