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.
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 was down nearly 4%, while the SPDR S&P 500 ETF dropped 3% after the open.
Further, the price of bitcoin plummeted 18% Monday morning, trading below $50,000, per Coindesk. Cryptocurrency stock Coinbase Global 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 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, Uber Technologies and Lyft, along with Disney, Caterpillar, Amgen, Novo Nordisk and Eli Lilly.
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, ServiceNow, Shake Shack and Spotify.
Also on the list are Dow Jones components Amazon, American Express, Apple, IBM and Microsoft.
There were no new stocks on IBD 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 Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
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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%.
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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 | 1,792.05 | Cup with handle | |
| Shake Shack | 111.29 | Cup base | |
| ServiceNow | 806.52 | Handle entry | |
| Spotify | 331.08 | Flat base |
Source: IBD Data as of Aug. 5
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Magnificent Seven Stocks: Tesla
Magnificent Seven stock Tesla 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 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 the second 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.
