Nasdaq soars, Dow falls while Nvidia stock bounces back

The Dow Jones Industrial Average (^DJI) reverses course from its Monday gains, closing Tuesday's session lower by over 290 points. The Nasdaq Composite (^IXIC), on the other hand, has soared by 220 points, or 1.26%.

Market Domination Overtime's Julie Hyman explains why Nvidia's (NVDA) drag-on effect in tech-heavy indexes is evident by the outperformance in the S&P Equal Weight Index (^SPXEW) and Nasdaq 100 (^NDX), while Jared Blikre recaps the gains seen in major tech stocks today, including Nvidia.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Luke Carberry Mogan.

Video transcript

Another divergence between the dow and the NASA but they flipped, they switched places.

So the dow down today about 296 points, about three quarters of 1%.

The S and P still hovering in the middle up about 4, 10 of 1%.

And then the NASA, the big winner of the day up about one and a quarter percent.

Now, another trend that we have been watching in recent days was a broadening of the moves.

Well, today, the S and P equal weight index is dramatically under performing the S and P 500 which leads us once again to believe that it is a number of the small, well, not the small, the very large, a small number of the very large growth mega caps that are helping lead the gains in todays session.

You see that in the NASDAQ 100 which is also outperforming on the day, you still see yields kind of hovering around four and a quarter percent or so.

So that's some that is not creating any kind of obstacle for some of the gains that we're seeing, but just basically kind of a rebound move today.

Jared, you know, the tenure is interesting.

It's been consolidating over the last five days or so.

Hasn't moved much.

So, it's just coiling for a move and that itself could be a catalyst.

But I've been told I have a minute here.

So I'd like to show you what the S and P 500 market cap versus equal weight has done here over the last few days.

And so the, the Cyan line up here, this is the equal weight and you can see it was uh soaring yesterday, but it took a dive today.

Meanwhile, the S and P 500 the regular way we calculate it market cap weighted just been trending down, although it is up a little bit today.

And you can also see uh an interesting dynamic in the NASDAQ versus the Dow dow is in the green here, NASDAQ is in the red and again, this is over five days.

So we'll have to see if anything comes of this.

But uh I'm gonna be talking in 30 minutes about uh kind of a change in leadership that we're seeing and maybe this will last, maybe it won't.

This is a NASDAQ 100.

And guess what?

All those doomsayers, those naysayers who thought the uh the market was going to zero NVIDIA up 6% today, meta up 2% be up 2%.

And when you look at the sector action, what a break from the days before communication services that's up 1.14%.

And then XL K that's tech is up 1.8% and really nothing else is outperforming today.

So a real switcheroo in the market, real estate and materials both down more than 1%.

Utilities also down nearly 1%.