After the market closes, the chip manufacturing company will present its fourth quarter results report and the company is expected to multiply its fourth quarter revenue by more than three.
The main Wall Street indices falls deepen this Wednesday, February 21, at a time when Investors were preparing for chip designer Nvidia’s earnings report, that could curb this year’s euphoria over artificial intelligence if the results are not stellar, and They were waiting for the minutes of the most recent monetary policy meeting of the Federal Reserve.
In that context, the S&P 500 loses 11.05 points, or 0.2%, to 4,964.46 units, while the Nasdaq down 99.96 points, or 0.6%, to 15,530.82 units. Meanwhile, the Dow Jones Industrial Average It lost 71.27 points, or 0.2%, to 38,492.53 units.
Nvidia shares continue to fall ahead of the balance sheet presentation
The Nvidia stock loses 2% after a drop of more than 4% in the previous session, pending the quarterly results of the semiconductor company, scheduled for after the markets close on Wednesday.
It is expected that the company multiplies its fourth quarter revenue by more than three thanks to the strong demand for its chips, which dominate the artificial intelligence (AI).
However, the Analysts warned that Nvidia’s lofty valuation could make it vulnerable to sharp declines if it reports anything less than a spectacular report.and also spark a broader sell-off among other tech companies that have benefited from bets on AI.
The chipmaker’s stock soared 38.2% so far this yearwhich compares with increases of 5.7% and 3.6% in the Philadelphia Semiconductor Index and the Nasdaq, a very technological market.
Wall Street with an eye on inflation and interest rates
Wall Street’s rally this year was largely driven by artificial intelligence. But she hit a rough patch after last week’s data hinted at a persistent inflation and stoked concerns that the Federal Reserve could delay the start of its monetary easing cycle.
The January inflation data complicate the next decisions of the Federal Reserve of the United States on the interest ratesthe president of the Richmond Fed said on Wednesday, Thomas Barkin.
The minutes of the Fed’s January monetary policy meetingdue out this afternoon, will offer more clues about the timeline for potential interest rate cuts.
Source: Ambito
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