Wall Street slips as Nvidia results and Fed minutes loom

Nov 21 (Reuters) – U.S. stocks fell on Tuesday as investors awaited Nvidia’s quarterly results and Federal Reserve policy meeting minutes, while numerous disappointing results from retailers also weighed on sentiment .

A tech-fueled rally led the S&P 500 (.SPX) and Nasdaq (.IXIC) to record their highest closing levels in more than three months on Monday, as investors continued to bet that the Fed was at the end of its rate hike cycle. .

Shares of big tech companies, which have driven the bulk of the S&P 500’s gains this year, now face a big test with Nvidia set to report third-quarter results after markets close.

The chip designer is expected to once again provide strong revenue guidance, but the focus will be on the impact of widening U.S. restrictions on sales of its high-end chips to China.

Nvidia shares edged down 0.2%, while other large-cap stocks were mixed.

“The market is digesting yesterday’s big move,” said Robert Pavlik, senior portfolio manager at Dakota Wealth, adding that a year-end rally was still likely given better-than-expected earnings and moderation in inflation.

Ahead of the release of the quarterly report, the minutes of the Fed’s November meeting are expected to offer more clues on monetary policy, after signs of easing consumer and producer prices reinforced expectations that US interest rates had peaked. The minutes are expected to be released at 2:00 p.m. ET (19:00 GMT).

Traders have fully priced in the likelihood that the Fed will keep interest rates steady in December, with 29% betting on the likelihood that the central bank will cut rates as early as March, according to the group’s Fedwatch tool. CME.

“The economy is slowing down. If they (the Fed) sit idly by and let the situation continue to deteriorate, then we start to worry that a soft landing could turn into a bit of a bumpy landing,” added Pavlik.

At 9:42 a.m. ET, the Dow Jones Industrial Average (.DJI) was down 80.09 points, or 0.23%, at 35,070.95, the S&P 500 (.SPX) was down 10.00 points, or 0.22%, to 4,537.38, and the Nasdaq Composite (.IXIC) was down 51.86 points, or 0.36%, to 14,232.68.

A series of downbeat updates from U.S. retailers have painted a gloomy picture for consumer spending.

Lowe’s Cos.(LOW.N) fell 2.8% after the home improvement chain forecast a larger-than-expected decline in annual comparable sales and cut its profit forecast for the year.

The S&P 500 retail subindex (.SPXRT), home to the stock, fell 1.7%.

Best Buy(BBY.N) fell 4.5% after the electronics retailer said it expected a steeper decline in comparable annual sales, while Kohl’s Corp(KSS.N) lost 9. 2% due to missing sales estimates for the third quarter.

This week is light in terms of economic data, while trading volumes are also expected to be light heading into the Thanksgiving holiday.

Declining issues outnumbered advancing stocks by a ratio of 2.33 to 1 on the NYSE and by a ratio of 2.04 to 1 on the Nasdaq.

The S&P recorded 19 new 52-week highs and no new lows, while the Nasdaq recorded 24 new highs and 36 new lows.

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Shristi is a correspondent and part of the markets team reporting on equity markets in the US, UK, Canada, Europe and emerging markets.