On Monday, the US stocks toppled, as Nvidia and Caterpillar warning shifted the market sentiment and a crash-dive of Chinese Industrial profit on December for the second time amid US-China tariff talk, had trimmed their previous cropping.
The double whammy seemed to be smothering the investors’ confidence, as the Dow Jones Industrial was down by 1.02 percent to 24,425.23 and the Standard & Poor 500 dropped 0.91 percent to 2,640.60, while the tech-hefty Nasdaq composite took a heavier beating, drowned by 1.21 percent to 7,078.33 on midday US trading session, Jan.
28th, Monday. The shares of Caterpillar, the largest heavy equipment maker, plummeted by 9 percent, after its quarterly profit had missed the Wall St. estimates by a wide margin, as softened demand in China and mounting freight as well as manufacturing cost had been weighing on stocks.
While the share price of Caterpillar had been on its way to track their worst intra-day fall since August 2011, the Nvidia shares stumbled by 14.8 percent, after the chipmaker had slashed its Q4, 2018, revenue estimate by half a billion dollars, amid weaker demands for gaming chips in China followed by much-softened global growth, alongside, lower-than-anticipated data center sales.
Citing Chinese financial figures’ impact on US corporate earnings, a partner at Cherry Lane Investments, Rick Meckler said, “People had some optimism last week on earnings when numbers were pretty good, and today it’s clearly gone the other way.
China is such a big part of so many companies’ earnings picture. ”