Stocks Lose Gains as Nvidia Weighs on Big Tech – US Market Wrap

The stock market failed to maintain earlier gains following a rally that has already surpassed $4 trillion this year, with Nvidia leading losses in tech megacaps.

Trading was primarily driven by quarter-end positioning. According to an earlier estimate by Morgan Stanley, pensions may need to sell roughly $22 billion in global stocks and buy $17 billion in fixed income to return to prior asset allocation levels.

As traders prepared for the Fed’s preferred inflation gauge on Friday, when markets would be closed, they analysed the most recent economic data. US consumer confidence remained stable, durable goods orders increased, and home price growth accelerated to the fastest rate since 2022.

The S&P 500 remained near 5,210, with Nvidia halting a six-day rally and falling 2%. United Parcel Service fell as investors viewed its long-term sales target as difficult to achieve. Former President Donald Trump’s startup, Trump Media & Technology Group, soared in its first day as a publicly traded company.

Treasuries rose from session lows following a $67 billion sale of five-year notes.