Stocks Dive In Market Sell-Off (2024)

The Dow Jones Industrial Average and other major stock indexes plunged Monday, as the stock market sell-off worsened. During the carnage, Nvidia dived on the stock market today amid reports that its next-generation Blackwell artificial intelligence chips will be delayed due to a design flaw.

↑X

Nasdaq Enters Correction After Market Breaks Expectations; CBOE, Ferrari, MercadoLibre In Focus

See All Videos

NOW PLAYINGNasdaq Enters Correction After Market Breaks Expectations; CBOE, Ferrari, MercadoLibre In Focus

After the opening bell, the Dow Jones Industrial Average briefly plunged more than 1,200 points, or 3%, before paring losses to 2.4%. The S&P 500 declined 3%, and the tech-focused Nasdaq composite slashed heavy losses to 3.9% in morning action.

Early Monday, the 10-year Treasury yield declined to 3.7%. Oil prices dropped, with West Texas Intermediate futures trading around $72.90 a barrel.

Among exchange traded funds, the Invesco QQQ Trust (QQQ) was down nearly 4%, while the SPDR S&P 500 ETF (SPY) dropped 3% after the open.

Further, the price of bitcoin plummeted 18% Monday morning, trading below $50,000, per Coindesk. Cryptocurrency stock Coinbase Global (COIN) was down more than 10% in morning trading.

Wake-Up Calls Still Ringing For Nvidia, Google, Meta And More

Stock Market Today: Nvidia Dives

Nvidia shares tumbled more than 8% Monday morning after the company told Microsoft (MSFT) and another key cloud customer that its Blackwell B200 AI chips will be delayed due to a design flaw found late in the production process. The news was reported by The Information on Saturday, citing a Microsoft employee and other sources.

This week's economic calendar is light, with very few pieces of data for investors to sift through.

Notably, the Institute for Supply Management's service-sector activity index, due out Monday at 10 a.m. ET, is expected to return to expansion territory above 50, rising 2.2 points to 51, according to the FactSet forecast.

Key earnings reports this week include Palantir Technologies (PLTR), Uber Technologies (UBER) and Lyft (LYFT), along with Disney (DIS), Caterpillar (CAT), Amgen (AMGN),Novo Nordisk (NVO) andEli Lilly (LLY).

Adjust To Changing Market Conditions, With IBD's New Exposure Levels

Dow Jones Extends Sell-Off

On Friday, the Dow Jones Industrial Average sold off 1.5%, while the S&P 500 lost 1.8% and the tech-heavy Nasdaq composite plunged another 2.4%. The small-cap Russell 2000 index tumbled 3.5%.

During Friday's IBD Live show, the IBD Live team discussed the current trading conditions and how investors should handle the stock market today.

Now is an important time to read The Big Picture column amid the ongoing market action. Also, be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.

Learn How To Time The Stock Market With IBD's ETF Market Strategy

Stock Market Today:Best Stocks To Watch

Among the best companies to watch on the stock market today are MercadoLibre (MELI), ServiceNow (NOW), Shake Shack (SHAK) and Spotify (SPOT).

Also on the list are Dow Jones components Amazon (AMZN), American Express (AXP), Apple (AAPL), IBM (IBM) and Microsoft.

There were no new stocks onIBD MarketSurge's Breaking Out Today list Friday.Check out the MarketSurge "Near Pivot" list for more stocks nearing buy points in bases. To find more stock ideas, check IBD Stock ListslikeIBD 50,Big Cap 20andStocks Near A Buy Zone.

Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard

Dow Jones: American Express, IBM

Among Dow components, payments giant American Express broke below its 50-day line, sharply undercutting a flat base's 244.41 entry during Friday's losses, according to MarketSurge pattern recognition. Shares dropped more than 2% Monday.

Meanwhile, IBM continues to trade near a 189.47 cup-with-handle entry. IBM stock lost 3.3% early Monday.

Outside the Dow Jones index, MercadoLibre is rapidly nearing a 1,792.05 buy point in a cup with handle, as shares rallied more than 10% Friday. Shares fell more than 2% early Monday.

ServiceNow is just below a 806.52 handle entry. ServiceNow lost more than 2% early Monday.

Shake Shack soared surged last week on earnings, but gave up some gains Friday. Shares were building the right side of a cup base that has a 111.29 buy point. Shares dropped 2.4% Monday morning.

Finally, music streaming platform Spotify closed below a flat base's 331.08 buy point following a recent breakout move. And on Monday morning, Spotify stock fell almost 6%.

Find The Best Stocks To Buy And Watch With IBD Stock Screener And IBD Screen Of The Day

Stock Market Today: Companies To Watch

These are four stocks in or near buy zones in today's stock market.

Company Name	Symbol	Correct Buy Point	Type Of Buy Point
MercadoLibre	(MELI)	1,792.05	Cup with handle
Shake Shack	(SHAK)	111.29	Cup base
ServiceNow	(NOW)	806.52	Handle entry
Spotify	(SPOT)	331.08	Flat base

Source: IBD Data as of Aug. 5

Join IBD Experts As They Analyze Leading Stocks In The Stock Market Today On IBD Live

Magnificent Seven Stocks: Tesla

Magnificent Seven stock Tesla (TSLA) dived 5.3% in early morning trading.

Tesla stock skidded 4.2% Friday, falling below the 50-day line for the first time since June 11.

Dow Jones Leaders: Amazon, Apple, Microsoft

Among Dow Jones components in the Magnificent Seven, Amazon, Apple and Microsoft traded sharply lower after Monday's stock market open.

Amazon shares plunged nearly 9% Friday after the company's second-quarter results, finishing right at the long-term 200-day line. The stock tumbled more than 5% Monday morning.

Apple stock climbed 0.7% Friday, shrugging off the stock market weakness. Shares are extended above a 199.62 entry. Apple sold off more than 5% early Monday after Warren Buffett's Berkshire Hathaway (BRKB) disclosed that it held $84.2 billion worth of Apple stock as of June 30. That implies a 49.4% reduction in the iPhone maker in thesecond quarter.

Microsoft declined 2.8% Friday, extending a losing streak to four sessions. Shares are at their 200-day line. And on Monday morning, the stock lost 3.3%.

Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.

YOU MAY ALSO LIKE:

Check Out IBD's New Exposure Levels To Help You Stay In Step With The Market Trend

Top Growth Stocks To Buy And Watch

Learn How To Time The Market With IBD's ETF Market Strategy

Find The Best Long-Term Investments With IBD Long-Term Leaders

Spot Buy Points And Sell Signals With MarketSurge Pattern Recognition

FAQs

What is the 10 am rule in stock trading? ›

Some traders follow something called the "10 a.m. rule." The stock market opens for trading at 9:30 a.m., and the time between 9:30 a.m. and 10 a.m. often has significant trading volume. Traders that follow the 10 a.m. rule think a stock's price trajectory is relatively set for the day by the end of that half-hour.

What is the 1 rule in stock market? ›

Enter the 1% rule, a risk management strategy that acts as a safety net, safeguarding your capital and fostering a disciplined approach to navigate the market's turbulent waters. In essence, the 1% rule dictates that you never risk more than 1% of your trading capital on a single trade.

Get More Info Here ›

What is the 3 day rule in stocks? ›

The 3-Day Rule in stock trading refers to the settlement rule that requires the finalization of a transaction within three business days after the trade date. This rule impacts how payments and orders are processed, requiring traders to have funds or credit in their accounts to cover purchases by the settlement date.

Tell Me More ›

Should you sell all of your investments if the stock market goes down? ›

The Bottom Line

Panic selling when the stock market is going down is more likely to hurt than help your portfolio. Moreover, you're locking in those losses. This is why it's important to understand your risk tolerance, your time horizon, and how the market works during downturns.

Learn More Now ›

What is the 11am rule in stocks? ›

What Is the 11am Rule in Trading? If a trending security makes a new high of day between 11:15-11:30 am EST, there's a 75% probability of closing within 1% of the HOD.

What is the 72 hour rule in stocks? ›

The next time you hear about a “can't miss” stock tip, wait 72 hours before doing anything. This gives you time to let the hype die down and think about whether the investment truly aligns with your goals and values.

Read On ›

What is 90% rule in trading? ›

The 90 rule in Forex is a commonly cited statistic that states that 90% of Forex traders lose 90% of their money in the first 90 days. This is a sobering statistic, but it is important to understand why it is true and how to avoid falling into the same trap.

Keep Reading ›

What is the golden rule of stock? ›

1 – Never lose money. Let's kick it off with some timeless advice from legendary investor Warren Buffett, who said “Rule No. 1 is never lose money.

Get More Info Here ›

What is the 5 3 1 rule in trading? ›

Clear guidelines: The 5-3-1 strategy provides clear and straightforward guidelines for traders. The principles of choosing five currency pairs, developing three trading strategies, and selecting one specific time of day offer a structured approach, reducing ambiguity and enhancing decision-making.

Explore More ›

What time of day do stock prices peak? ›

Market volume and prices can and do go wild first thing in the morning, precisely the first 15 minutes. People are making trades based on the news. Power hour between 3:00 pm and 4:00 pm is also a very popular time. The best time to buy stocks is 9:30 am to 11:00 am EST because the market is most liquid.

What is the best time of day to buy shares? ›

The best time to buy shares for beginner investors is around noon. The market tends to be stable and more predictable at this time for inexperienced investors to navigate. If you are investing for the long-term, the time of day when you decide to buy or sell stocks is less significant.

Find Out More ›

What is the 15 minute rule in stocks? ›

A buy signal is given when price exceeds the high of the 15 minute range after an up gap. A sell signal is given when price moves below the low of the 15 minute range after a down gap. It's a simple technique that works like a charm in many cases.

At what age should I get out of stocks? ›

The 100-minus-your-age long-term savings rule is designed to guard against investment risk in retirement. If you're 60, you should only have 40% of your retirement portfolio in stocks, with the rest in bonds, money market accounts and cash.

See Details ›

When should you not sell a stock? ›

For example, if there is a market downturn, you don't want to sell your shares at this time and lock-in losses. Emergency funds allow you to focus on investing for the long term. Most general guides advise three to six months of living expenses in cash before you start investing.

Know More ›

What is the 10am gap rule? ›

You use the 10 A.M. rule, and wait until after 10 A.M. to buy your stocks and options. If the stocks and options make a new high for the day after 10 A.M., then, and only then, should you trade the stocks and options. Of course, you will use stops to protect yourself, like you would on any trade.

Get More Info ›

What are the 10 am rules? ›

The 10am rule is an investment strategy used by traders to avoid the volatility of the market's opening hour. By waiting until 10am, traders hope to gain a clearer picture of the market's direction, thus making more informed trading decisions.

Know More ›

What is the 2 day rule for stock trading? ›

Any funds used to meet the day-trading minimum equity requirement or to meet a day-trading margin call must remain in the account for two business days following the close of business on any day when the deposit is required.

Get More Info ›

What is No 1 rule of trading? ›

Rule 1: Always Use a Trading Plan

The key here is to stick to the plan. Taking trades outside the trading plan deviates from your predicted performance and nullifies the value of your plan even if they turn out to be winners.

Learn More ›