Nvidia's Earnings Impact Wall Street: Markets React to Tech Giant's Results

Nasdaq, S&P futures flat as markets assess Nvidia's results

Shares of the chip bellwether dropped nearly 5% in premarket trading after a largely in-line revenue forecast for the current quarter Futures tracking the tech-heavy Nasdaq and the benchmark S&P 500 were flat on Thursday, after AI-darling Nvidia's quarterly forecast failed to impress investors but a beat on both revenue and earnings expectations signaled resilient demand. Shares of the chip bellwether dropped nearly 5% in premarket trading after a largely in-line revenue forecast for the current quarter. "The market may be disappointed not to see a bigger beat on its outlook, given what are now almost unattainable expectations, but the bottom line here is that the long-term story remains intact," said Josh Gilbert, market analyst at investment platform eToro. Semiconductor peers Broadcom and Advanced Micro Devices fell 1.9% and 1.6%, respectively. Shares of chip-making equipment providers Applied Materials and KLA Corp were down 0.1% each. However, the declines were limited by gains in Nvidia's heavyweight megacap customers, which have been the focus of market euphoria on the prospect of artificial intelligence integration boosting corporate profits. Microsoft rose 0.50%, Meta added 0.40%, Alphabet climbed 0.30% and Amazon.com was up 0.60%, while Apple gained 1%. At 04:41 a.m., Dow E-minis were up 182 points, or 0.44%, S&P 500 E-minis were down 1.25 points, or 0.02%, and Nasdaq 100 E-minis were down 25 points, or 0.13%. Markets have see-sawed between marginal gains and losses in the run-up to Nvidia's results, as traders waited to see if the company would sustain its unmatched revenue growth. There was also nervousness about what its earnings could mean for the trajectory of highly valued AI-related stocks. The benchmark S&P 500 closed lower on Wednesday and is 1.3% from a record high, while the Dow is hovering around an all-time high. Among other movers, Dow-component Salesforce beat Street expectations for second-quarter results, sending the cloud company's shares up 4.8%. CrowdStrike dropped 5.2% after the cybersecurity company cut its revenue and profit forecasts in the aftermath of last month's global outage. On the economic data front, traders await the second estimate of gross domestic product for the second quarter and jobless claims data for the week ended on Aug. 24, both due at 8:30 a.m. ET. (Reporting by Purvi Agarwal and Johann M Cherian in Bengaluru; Editing by Pooja Desai)

US stocks slip ahead of Nvidia financial results

Wall Street stocks mostly ticked lower on Wednesday, as investors await chipmaker Nvidia's earnings report after the closing bell. Around 15 minutes into trading, the broad-based S&P 500 fell 0.2 percent to 5,616.13, while the tech-rich Nasdaq Composite Index slumped 0.5 percent to 17,674.05. The Dow Jones Industrial Average was flat at 41,232.76. The focus on chip titan Nvidia comes as markets try to gauge the health of the tech and AI sector. The company has seen profits surge thanks to demand for its GPU chips, which have set the industry's pace in pushing new AI advances -- making it an indicator for the sector. Nvidia shares slid 1.4 percent in early trading. Apart from Nvidia, traders will also be monitoring an update to US second quarter GDP growth on Thursday and data on the Federal Reserve's favored inflation gauge on Friday. While a US central bank rate cut is widely expected in September, upcoming economic indicators are watched for their potential bearing on how big the reductions could go. Among individual companies, Nordstrom shares rose 5.4 percent after earnings that beat expectations.

Wall St poised to open slightly higher after Nvidia results, economic data

Wall Street's main indexes were set to open slightly higher on Thursday after AI chip firm Nvidia's largely in-line forecast and data that showed the U.S. economy remained robust. Chip bellwether Nvidia's shares pared some losses and were last down 3.1% in premarket trading, following a largely in-line revenue forecast for the current quarter that overshadowed upbeat second-quarter results. "This is the first time that there has been criticism of the estimates beat and the outlook raise. It is not as great as some investors had anticipated," said Peter Andersen, founder of Andersen Capital Management. "Nvidia might be showing early signs of slowdown in capital expenditure for artificial intelligence." Semiconductor peers Broadcom and Advanced Micro Devices fell 0.5% each. However, the declines were limited by gains in Nvidia's heavyweight megacap customers, which have been the focus of market euphoria on the prospect of artificial intelligence integration boosting corporate profits. Microsoft rose 0.5%, Meta added 0.6% and Alphabet and Amazon.com rose more than 0.7% each, while Apple gained 1.6%. At 08:45 a.m. ET, Dow E-minis were up 245 points, or 0.59%, S&P 500 E-minis were up 14.25 points, or 0.25%, and Nasdaq 100 E-minis were up 51 points, or 0.26%. Markets have seesawed between marginal gains and losses in the run-up to Nvidia's results, as traders waited to see if the company would sustain its unmatched revenue growth. There was also nervousness about what its earnings could mean for the trajectory of highly valued AI-related stocks. The benchmark S&P 500 is 1.3% from a record high, while the Dow is hovering around an all-time peak, with expectations for an interest rate cut at the U.S. Federal Reserve's upcoming September meeting staying robust. Odds of a reduction of 25 basis points in September stand at 67.5%, while those of a larger 50 bps are at 32.5%, according to CME Group's Fed Watch Tool. The U.S. economy grew faster than initially thought in the second quarter amid strong consumer spending. Gross domestic product increased at a 3.0% annualized rate last quarter, the Commerce Department's Bureau of Economic Analysis said in its second estimate of second-quarter GDP, an upward revision from the 2.8% rate reported last month. "The economy is not slipping into a recession anytime soon and that's beneficial for the stock market, along with a rate cut that's very likely coming in September," said Robert Pavlik, senior portfolio manager at Dakota Wealth. Separately, a Labor Department report showed initial claims for unemployment benefits for the week ending Aug. 24 stood at 231,000, marginally lower than estimates of 232,000 as per economists polled by Reuters. Friday's Personal Consumption Expenditure data for the month of June, the Fed's preferred inflation gauge, could offer hints on the central bank's monetary policy easing trajectory. Among other movers, Dow-component Salesforce beat Wall Street expectations for second-quarter results, sending the enterprise cloud firm's shares up 4.4%. CrowdStrike dropped 2.1% after the cybersecurity company cut its revenue and profit forecasts in the aftermath of last month's global tech outage. (Reporting by Purvi Agarwal and Johann M Cherian in Bengaluru; Editing by Pooja Desai and Shounak Dasgupta)

Nasdaq leads Wall Street lower as Nvidia results loom

Paid parking in Dubai: Residents face up to Dh4,000 extra yearly costs when new rates kick in Wall Street's main indexes were lower on Wednesday ahead of Nvidia's earnings, with the Nasdaq leading declines, as focus was squarely on if the recent bull market rally that was led by the AI chip firm and other tech-related shares can be sustained. The three main indexes have swung between small gains and losses this week, with the Dow drifting near a record high and the S&P 500 within 1% of an all-time peak, as investors await Nvidia's results after the bell. The chip designer's shares were down 2.5%. Options pricing shows traders anticipate a move of around 9.8% in Nvidia's shares on Thursday, a day after it reports earnings, data from analytics firm ORATS showed. Any disappointment in Nvidia's results could hurt megacaps and other semiconductor stocks, which have led 2024's rally on the prospect of artificial intelligence integration boosting corporate profits. "Investors are a little nervous about what they're going to see and hear from Nvidia ... since expectations have been so high, you sort of wonder how much better can it get," said Sam Stovall, chief investment strategist at CFRA Research. "The news itself will be driving not only Nvidia's shares, but the technology sector and the overall market." Other chip stocks such as Broadcom and Advanced Micro Devices fell 1.7% and 2.9%, respectively, with the Philadelphia SE Semiconductor index down 1.9%. All the growth stocks were in the red, with Meta down 0.7%, Microsoft lower by 1.1% and Alphabet declining 1.3%. At 11:49 a.m. ET, the Dow Jones Industrial Average was down 137.89 points, or 0.33%, at 41,112.61, the S&P 500 was down 35.66 points, or 0.63%, at 5,590.14, and the Nasdaq Composite was down 214.22 points, or 1.21%, at 17,540.60. Six of the 11 S&P 500 sectors were lower, led by a 1.5% drop in technology stocks. The S&P index recorded 73 new 52-week highs and one new low, while the Nasdaq recorded 63 new highs and 68 new lows.