Nasdaq 100, Dow Jones, S&P 500 News: Nvidia Results Set to Influence Wall Street

Wall Street Struggles as Investors Await Nvidia’s Results

Wall Street’s major indexes saw little movement on Wednesday as investors awaited key announcements from Nvidia and the Federal Reserve. The market remained tentative ahead of Nvidia’s quarterly earnings report and the release of the Fed’s policy meeting minutes, both scheduled for later in the day.

At 17:00 GMT, the Dow Jones Industrial Average is 39841.85, down 31.14 or -0.08%. The S&P 500 Index is trading 5319.70, down 1.71 or -0.03% and the Nasdaq is at 16823.63, down 8.99 or -0.05%.

Focus on Nvidia

Investors are highly anticipating Nvidia’s first-quarter results, due after the market closes. As a leading player in the AI chip sector, Nvidia’s performance is expected to influence the market significantly. The company has seen a more than 92% surge in its stock value this year, making it the third-largest U.S. company by market value. However, its shares fell 0.5% on Wednesday after hitting a nearly two-month high on Tuesday.

“The key factor is whether Nvidia meets and exceeds revenue expectations. Investors have set high expectations for a strong quarter,” commented Art Hogan, chief market strategist at B. Riley Wealth.

Fed Meeting Minutes and Rate Cut Speculation

Investors are also eagerly awaiting the minutes from the latest Federal Reserve policy meeting for insights into the timing of potential rate cuts. Several Fed officials have emphasized the need for further signs of easing inflation before any rate cuts are implemented. Current market sentiment, as indicated by CME’s FedWatch Tool, suggests a 72% chance of the Fed cutting rates by at least 25 basis points in September.

Sector Highlights

Chipmaker Analog Devices saw a significant jump of 7.8%, boosting the S&P 500 Information Technology index after its third-quarter revenue forecast exceeded expectations. Conversely, the energy sector was the worst performer, down 1.7% due to lower oil prices.

Retailer Target’s shares fell 7.5% following disappointing quarterly earnings and forecasts. In contrast, TJX, the parent company of TJ Maxx, gained 5.2% after raising its annual profit forecast.

Market Forecast

In the short term, the market’s direction will largely depend on Nvidia’s performance and the Fed’s policy stance. A strong showing from Nvidia could bolster the tech sector and overall market sentiment, while clear guidance from the Fed could alleviate investor uncertainty. For now, cautious optimism prevails, with traders closely monitoring these pivotal developments.

The recent bull run has pushed all three major indexes to record highs, fueled by a strong earnings season and renewed hopes for interest rate cuts. The Nasdaq touched a fresh record high in volatile trading. Analysts predict the S&P 500 will end the year near its current level of 5,302 points but caution that the index’s strong performance could lead to a correction.

Technical Analysis

The E-mini S&P 500 Index is hovering near its record high hit earlier in the session. A trade through 5349.25 will signal a resumption of the uptrend and could launch another acceleration to the upside.

On the downside, crossing back under the previous top at 5333.50 will be a sign of weakness, while a move under the bottom at 5305.75 will change the minor trend to down.