Heavy profit-taking in Nvidia shares

Wall Street ended mixed last Friday with heavy profit-taking in Nvidia shares as analysts raised concerns about the sustainability of their strong valuation increases.

The S&P 500 slipped 0.2%, while the Dow rose 1.4% for the week, marking its best weekly performance since May, driven by gains in McDonald’s, Nike, and Amazon. Meanwhile, the Nasdaq Composite fell 32.23 points, or 0.2%.

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In Asia, major indices finished mostly lower due to profit-taking activities. In Hong Kong, the HSI fell 307 points to end just above the 18,000 mark.

Profit-taking

On the domestic front, the FBM KLCI pared gains and ended in negative territory due to late selling.

“Despite increasing volatility, we maintain a cautiously optimistic outlook for the local market. Nonetheless, our long-term perspective is positive, backed by attractive valuations, robust corporate earnings, increasing FDI, and improving economic conditions.

“As such, we expect bargain hunting to prevail and anticipate the benchmark index to trend within the range of 1,590-1,600 today,” says Rakuten.