Why Nvidia Stock Is Falling Today
Nvidia (NASDAQ: NVDA) stock is losing ground Wednesday due to macroeconomic and business-specific catalysts. The company's share price was down 2.5% as of 11:30 a.m. ET amid a 1% decline for the S 500 and a 1.6% decline for the Nasdaq Composite. The stock had been been down as much as 4.5% earlier in the day's trading.
Stocks are selling off today following new data from the Commerce Department showing that U.S. gross domestic product (GDP) declined 0.3% annually in the first quarter. Nvidia's valuation is also under pressure after a key customer published disappointing preliminary results.
U.S. GDP unexpectedly declined 0.3% in Q1 due to a surge in import activity ahead of tariffs that were implemented at the beginning of this month. Imports are subtracted from GDP, and the rush to import foreign-sourced goods in the first quarter ahead of new import taxes resulted in a decline for the domestic productivity measure the quarter. The average economist estimate had called for GDP to increase 0.4% annually in the quarter.
Source Fool.com
