Traders work on the floor of the New York Stock Exchange during the morning session on May 17, 2024.
Michael M. Santiago | Getty Images
US stocks were trading near the flat line on Wednesday as investors eagerly awaited the highly anticipated release of from Nvidia latest results report.
THE S&P500 decreased slightly, while the Dow Jones Industrial Average down 0.1%. THE Nasdaq Composite traded near the flat line.
Target Shares fell more than 7% on weaker-than-expected earnings, with management citing weaker spending trends in discretionary categories. The retailer’s problems have raised broader concerns about consumer health.
Nvidia shares fell 0.4% on Wednesday ahead of its quarterly earnings release after the bell. Analysts expect another strong quarter from the chipmaker. LSEG data shows that consensus estimates call for earnings per share and revenue to grow 400% and 240% year-over-year, respectively.
The chipmaker’s earnings announcement “has become one of the most important events on the macroeconomic calendar,” according to Deutsche Bank strategist Henry Allen.
Although the market has focused on artificial intelligence as a key driver of recovery, optimism about Federal Reserve rate cuts this year suggests the market could rebound even if Nvidia earnings disappoint , said Tim Courtney, chief investment officer at Exencial. Heritage advisors. “I think there is enough strength simply because the market is now expecting a soft landing.
Allen noted that the day after Nvidia’s last earnings report in February, the S&P 500 jumped more than 2% the next day, recording its best daily results in over a year.
Investors will be watching the report closely to see if this year’s tech rally can continue. The tech-heavy Nasdaq Composite Index has jumped 12% to record highs since the start of the year.
Existing home sales fell unexpectedly in April, indicating a potential slowdown in the housing market. Economists surveyed by Dow Jones expected home sales to rise during the month.
Traders will also monitor the minutes of the latest meeting of the Federal Open Market Committee.
The S&P 500 and the Nasdaq are coming off record sessions, while the Dow Jones rose slightly.
News Source : www.cnbc.com
Gn bussni
