NVDA Stock Price Premarket: Tech Shares Plummet Amid Rising Interest Rates and Trade Tensions

The premarket trading session for NVDA stock and other tech-heavy companies was marked by significant declines on Monday, as investors continued to grapple with the implications of rising interest rates and escalating trade tensions. The sell-off in the tech sector was particularly pronounced, with semiconductor stocks leading the way.

According to Art Hogan, chief market strategist at B. Riley Securities, the lack of trading volume due to the Columbus Day holiday made it difficult for markets to find direction. 'There are a lot of market participants that really key off of what the Treasury yields are doing, and when they're not open, it's hard to have that volume in the market,' Hogan said.

Meanwhile, 10-year Treasury futures were lower by about 0.6%, indicating that interest rates will likely continue their upward trajectory on Tuesday. The bond market was closed for trading, but futures contracts on the 10-year Treasury note had fallen in value, suggesting that yields will rise further.

Tech shares have been hit particularly hard in this sell-off, with rising interest rates exposing their relatively high valuations and increasing their cost of capital. Companies selling advanced computing semiconductors and related manufacturing equipment to China were among those that fell hardest, as investors grew increasingly concerned about the impact of trade tensions on their businesses.

The declines came as JPMorgan CEO Jamie Dimon warned that the U.S. economy was likely headed for a recession in 2023, citing the country's growing debt levels and declining productivity growth. The Biden administration's announcement of new export controls aimed at limiting U.S. sales to China also weighed on semiconductor stocks.

In the stock market, the S&P 500 fell 0.75% to 3,612.39, dragged down by semi stocks and dips in major tech names like Microsoft. The Dow Jones Industrial Average shed 93.91 points, or 0.32%, to close at 29,202.88. The Nasdaq Composite closed 1.04% lower at 10,542.10, hitting its lowest close since July 2020.

The declines in the tech sector were led by semiconductor stocks like Nvidia and AMD, which fell sharply as investors grew increasingly concerned about the outlook for these companies. With interest rates expected to continue rising and trade tensions showing no signs of abating, it remains to be seen whether NVDA stock and other tech shares will be able to recover from their current slump.

Nvda stock price premarket