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The markets remain under pressure as of mid-morning, with all three of the major stock market indices trading fractionally lower, though they are off their worst levels of the morning.
US stocks decline as traders weigh Trump's tariff threats and inflation data. Will rate cuts still happen?
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As of this writing, the Nasdaq Composite is down nearly 9% on the yearand 13% from its all-time high. That drop puts the Nasdaq in correction territory, which is defined as a decline of 10% or more.
In a roughly three-week span, Wall Street has reminded investors that stocks can, indeed, go down just as easily as they can power higher.
The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, but the index remained in the “Extreme Fear” zone on Wednesday.
There's uncertainty in the market right now as investors try to determine how much President Donald Trump's tariffs on imports will affect the U.S. economy. Judging by the market's recent sell-off, they're not overly optimistic.
The Nasdaq Composite (^IXIC 1.22%) started this week tumbling 4% on Monday -- the index's worst day since September 2022 -- and is still 12.5% off its all-time highs after today's trading session.
In a stunning turn of events, the Nasdaq Composite has completely cratered and is now down over 13% since Feb. 18 (as of this writing). The culprit has been a combination of U.S. President Donald Trump's tariffs and weak economic data that could be pointing to a recession, or perhaps stagflation.
The Nasdaq has entered a correction. A stock market correction means a decline of between 10% and 20% from all-time highs (a 20% decline officially triggers a bear market).
It's been a rough past four weeks for investors. All told, the Nasdaq Composite is now down 12% from its mid-February high.