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Freedom Capital Markets chief global strategist Jay Woods joins Catalysts to analyze the current downturn in Nvidia stock (NVDA) and the Dow Jones Industrial Average (^DJI) index.
"This is not the end of the world for Nvidia," Woods emphasizes. While the stock is currently under scrutiny as the only Magnificent Seven stock declining since November 1, Woods maintains that Nvidia remains fundamentally strong. He says overall, the stock is still in an uptrend. However, he sees a "near-term head and shoulders top" formation, which he views as a potential buying opportunity for investors.
"The fundamental story hasn't changed, nothing has changed there," Woods tells Madison Mills. "To me, this is just a pause."
Addressing the Dow Jones Industrial Average's movement, Woods notes the index is down 3.78% in its nine day losing streak, with UnitedHealth (UNH) leading the decline by erasing 725 points. "The move is just a garden variety sell-off, but the amount of stocks that are down is a little head-scratching," he states.
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Woods points out one positive: technology, communications, and discretionary sectors continue to lead gains — the same sectors that initially propelled the current bull market.
To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
This post was written by Angel Smith