Nvidia Slump Spurs Global Tech Stock Retreat

Nvidia's decline has triggered a broader sell-off in the technology sector, weighing down Wall Street's S&P 500 and Nasdaq indices, with the latter seeing a major turn lower. In response to the tech downturn, there has been a noticeable shift towards value stocks, as seen with gains in the Dow.

Equities

The FTSE 100 saw a positive start to the week, rising by 0.5% to touch a three-week high and briefly surpass the 8,300 mark. This upward trend was influenced by significant gains from Prudential, a major player in the life insurance sector. Prudential's shares climbed 7.3% following the announcement of a $2 billion share buyback plan, providing a substantial boost to the sector.

In addition to Prudential, Britvic also stood out in the UK market. Britvic's stock jumped 7.1% after news that PepsiCo agreed to waive a change of control clause, which facilitates a potentially increased bid from Carlsberg.

The Dow Jones Industrial Average rose by 0.66%, marking a one-month high and a five-day winning streak. This gain was supported by a broader participation of advancing stocks across various sectors, indicating a positive market breadth. However, the S&P 500 and the Nasdaq Composite experienced declines, dropping 0.31% and 1.09% respectively.

Nvidia saw its shares slide 6.68% in its third consecutive session of losses. This drop is attributed to profit-taking activities following the stock's sharp ascent last week, which temporarily positioned Nvidia as the world's most valuable company. Other prominent technology firms like Taiwan Semiconductor Manufacturing, Broadcom, Marvell Technology, and Qualcomm also faced declines, with their stocks falling between 3.53% and 5.7%.

Forex & Commodities

On Tuesday, the US dollar was subdued, hovering just below the 160 yen mark. Despite several attempts to break above this level, concerns about potential Japanese intervention have kept the yen supported, limiting the dollar's gains. The Australian dollar and the British pound also pulled back from their recent highs against the yen.

In the cryptocurrency markets, Bitcoin saw a rebound, increasing by over 3% to $61,319, after experiencing a significant drop the previous session.

Moving to commodities, gold prices declined slightly, down 0.2% at $2,327.52 per ounce. Similarly, oil prices remained stable with Brent futures slightly up by 5 cents at $86.06 a barrel, reflecting a careful market sentiment ahead of the US personal consumption expenditures (PCE) price index release this Friday.