Traders Brace for Swings on Nvidia Earnings Tomorrow – US Market Wrap
Stocks remained near all-time highs as traders awaited Nvidia’s results to see if the artificial-intelligence euphoria that has propelled the bull market has more room to run.
Just a day before the giant chipmaker’s earnings, investors are waiting to see if the AI darling will at least match Wall Street’s lofty expectations. Goldman Sachs’ trading desk once referred to Nvidia as “the most important stock on planet Earth” due to its massive impact on broader indexes. As a member of the “Magnificent Seven” group of megacaps, the company has accounted for more than one-third of the Nasdaq 100’s gain this year.
The S&P 500 rose to around 5,625. The Nasdaq 100 gained 0.3%. A closely watched index of chipmakers gained 1.1%. Nvidia gained 1.5%. Salesforce, which reports results on Wednesday, dropped 0.4%. Super Micro Computer fell 2.6% after Hindenburg Research announced it is shorting the server equipment manufacturer. The Russell 2000 index of small-cap stocks dropped 0.7%.
Treasury 10-year yields increased one basis point to 3.83%. The $69 billion US sale of two-year notes was well received. Oil fell as technical measures indicated that a three-day rally sparked by the threat of a halt in Libyan supplies had been overdone.
