Traders work the floor of the New York Stock Exchange.
NYSE
The S&P 500 fell slightly Friday after the broad market benchmark briefly climbed above 5,500 for the first time, as Nvidia shares slipped for a second day.
The broad market index was down 0.1%, while the Nasdaq Composite hovered near the flatline. The Dow Jones Industrial Average outperformed, rising 30 points, or 0.1%.
Nvidia shares were down more than 3.5% in early trading. On Thursday, the stock hit an all-time high before closing more than 3% lower. Nonetheless, the chipmaker is still up nearly 150% year to date, and briefly beat Microsoft as the most valuable public company on Tuesday.
The S&P 500 is coming off a losing session after hitting an intraday record of 5,505.53, but headed for a 0.6% weekly advance. The Nasdaq is tracking for a 0.1% weekly loss, while the Dow is the outperformer, touting a 1.6% week-to-date rise.
While some signs of an overextended market are appearing, it isn’t clear yet whether the market has reached its limits on the artificial intelligence-fueled rally — which can’t continue its “meteoric rise,” said Jamie Cox, managing partner at Harris Financial Group. Even Nvidia, which is large enough to sway the market, is showing signs that its upward momentum may be slowing.
“The good news is, reality does not mean markets crashing or having these big, massive draw downs,” he said. “It’s more of a rebalancing of the field a little bit, because the valuations of those companies have just gotten so far afield from the average stock that you probably would see some broadening, which has been long talked about.”
Trading on Friday could also be more volatile than normal due to triple witching — that is, the expiration of stock options, stock index options and stock index futures options.
