US stocks tumble as Nvidia-led rally fizzles ahead of Powell's Jackson Hole speech

Indexes dropped despite Nvidia stock hitting an all-time high after the chipmaker's blowout second-quarter earnings report.

• US stocks tumbled Thursday after an early Nvidia-led rally lost momentum and turned negative.
• Nvidia stock soared to an all-time high after the company beat earnings views and raised its guidance.  
• Investors will be watching for Jerome Powell's speech Friday at Jackson Hole, Wyoming.

US stocks closed lower Thursday, after an early Nvidia-led rally lost momentum and turned negative.

Late Wednesday, Nvidia reported blowout earnings and raised its guidance. The chipmaker's stock soared as high as 6.7% to a new all-time record of $502.66, before paring nearly all of its gains.

US bond yields resumed their march higher after pulling back Wednesday. That came as Boston Fed President Susan Collins said more rate increases may be needed, while Philly Fed President Patrick Harker said "we've probably done enough."

Investors will be watching for more signals from Fed Chairman Jerome Powell during his speech in Jackson Hole, Wyoming on Friday. 

"I think the Fed likely says something dovish-ish," Fundstrat strategist Tom Lee said earlier this week. "Why? Does Fed want to risk another 'something breaking' ala February 2023? While some look back at August 2022 when Fed Chair Powell's [Jackson Hole] statement was hawkish and marked the local top in 2022 (stocks fell -19% next 8 weeks), we think the context is the opposite."

Here's where US indexes stood as the market closed 4:00 p.m. on Thursday: 

• S&P 500: 4,376.31, down 1.35%

• Dow Jones Industrial Average: 34,099.42, down 1.08% (373.56 points)

• Nasdaq Composite: 13,463.97, down 1.87%

Here's what else is going on: 

• Apollo's Marc Rowan warned that S&P 500 investors are betting on a handful of stocks like Tesla and Nvidia.
• FTX tapped Mike Novogratz's Galaxy Digital to help sell its crypto stash.
• Bitcoin bottomed last year and the token could soar to $148,000 by 2025, a research firm said.
• JPMorgan's chief stock strategist said the 2023 market rally is over and the Fed isn't easing anytime soon.
• Beijing selling off US Treasurys is a sign of China's economic weakness.
• Argentina plans to repay some yuan borrowings from Chinese currency swap using IMF bailout money.
• Fannie Mae said the housing market will be stuck in a rut for a long time even if the US avoids recession.

In commodities, bonds, and crypto: 

• Oil prices climbed, with West Texas Intermediate up 0.22% to $79.06 a barrel. Brent crude, the international benchmark, inched higher 0.18% to $83.36 a barrel.
• Gold edged lower 0.17% to $1,944.80 per ounce
• The 10-year yield ticked up 3.3 basis points to 4.231%
• Bitcoin fell 2.06% to $26,065.