Nvidia Corp.’s stock sank briefly into bear market territory in midday trade Monday, before bouncing back out of it, but was still on course to close at a three-month low. The stock dropped as much as 3.3% to an intraday low of $95.17, which was 20.1% below the Feb. 7 record close of $119.13. Many on Wall Street define a bear market as a 20% decline on a closing bases from a significant peak, that followed a rally of at least 20% off a previous significant low. The stock was down 2.8% at $95.65, or 19.7% below its record close. If it closed at or below $95.30, it would trigger the stock’s first bear market in 13 months. Back then, the stock had closed at an 8-year high of $33.75 on Dec. 4, 2015, then dropped 25% to a closing low of $25.22 on Feb. 8, 2016. That bear market ended Feb. 19, when it closed at $30.44, or 20.6% above the Feb. 8 low. Despite the stock’s recent weakness and bearish commentary from analysts, investor sentiment remains relatively high, as the latest data shows short interest, or bets that the stock will fall, had dropped to a four-year low through mid February. The stock had still nearly tripled over the past 12 months, while the PHLX Semiconductor Index had rallied 48% and the S&P 500 had gained 19%.
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