Nasdaq Today: What's Sending Chip Stocks AMD and NVIDIA Lower Wednesday?
The Nasdaq Composite (NASDAQINDEX: ^IXIC) has held up better during the coronavirus bear market than many of its broader benchmark peers, as investors have generally been optimistic about the prospects for the high-growth tech stocks that make up the bulk of the biggest companies that trade on the Nasdaq. However, as investors start to look past the coronavirus crisis, investors seem to be doing some sector rotation. That sent the Nasdaq Composite lower by more than 1% at noon EDT, and the Nasdaq 100 Index was down even more.
Among the outstanding performers in the Nasdaq so far in 2020 have been NVIDIA (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD). NVIDIA came into Wednesday up nearly 50% year to date, and AMD had been higher by 16%. However, both stocks suffered declines of more than 5% Wednesday morning, and shareholders wonder whether the conditions that spurred them to move higher could now reverse themselves and cause headwinds going forward.
Image source: NVIDIA.
Source Fool.com
