Stocks hold steady as investors await Nvidia’s key quarterly results and assess Target’s disappointing results.
Stocks on Wall Street fall as investors wait Nvidia’s quarterly results and evaluate Target’s disappointing retail results.
The Dow Jones Industrial Average rises 40 points, or 0.1%. The S&P 500 fell 0.4% and the Nasdaq Composite lost 0.5%.
“Like most investors, we’ll be watching NVIDIA’s earnings report closely today for clues on how AI spending is going,” Wolfe Research’s Chris Senyek wrote in a Wednesday note. “We view any flow of negative news or disappointing spending trends as one of the key risks that could delay or even reverse an increase towards the end of the year.”
Fury over AI
All attention is on the AI favorite, which fell 1% during morning trading. The results could be more relevant than some key economic reports, given the company’s $3.6 trillion market capitalization, and could set the market tone for the rest of the week. Investors will be looking for details on demand for its Blackwell AI chips, which CEO Jensen Huang described last month as “insane.”
Investors see this report as a possible catalyst to revive the market for the rest of the year, after a slowdown in the large post-election rally that propelled major indices to new highs. Stocks struggled last week when Federal Reserve Chair Jerome Powell indicated the central bank is in no rush to cut rates. Rising geopolitical tensions between Russia and Ukraine also spooked markets on Tuesday.
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In other news, the retailer Target fell 20% after reporting biggest profit loss in two years and cut its full-year forecasts due to declining discretionary demand and cost pressures. Citi downgraded Target to neutral, citing risks of market share loss.
Comcast shares rose slightly after the media company announced plans to spin off its cable networks, including MSNBC and CNBC. The separation is expected to take approximately a year. Comcast had first hinted at a possible spinoff during its October earnings call.
Investors will also hear comments from Federal Reserve Governors Lisa Cook and Michelle Bowman, as well as Boston Fed President Susan Collins.
Source: Ambito
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