Never bought Nvidia stock? Its slide could still hit your 401(k).
Summary
Nvidia’s reported 13% stock decline in one week could affect retirement accounts that hold index funds, because Nvidia makes up about 6% of the S&P 500. The S&P 500 still gained 2.9% through Thursday’s close, while an estimate excluding Nvidia put its gain at 3.8%.Key Facts
- About 97% of retirement plans offer index funds, up from 79% in 2006.
- Nvidia is included in the S&P 500, Nasdaq 100, and Dow Jones Industrial Average.
- Nvidia accounts for about 6% of the S&P 500 and is its second-largest component after Apple.
- Nvidia’s market value fell by more than $550 billion, or about 13%, from Nov. 6 over the following week.
- The reported decline followed revelations about cofounder Jensen Huang and his resignation as CEO on Thursday.
- The S&P 500 gained 2.9% for the week through Thursday’s close; an estimate excluding Nvidia put the gain at 3.8%.
- Broad index funds spread investments across many companies, which can reduce exposure to any one company’s problems.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
