Nvidia stock performance/ Wall Street update/ Target holiday forecast/ Treasury yields rise/ U.S. stock market today/ NEW YORK / Newslooks/ J. Mansour/ Morning Edition/ U.S. stocks edged lower Wednesday as investors braced for Nvidia’s highly anticipated earnings report. The S&P 500 dipped 0.4%, while Target shares plummeted nearly 20% after disappointing holiday forecasts. Nvidia’s results, expected after markets close, could significantly impact Wall Street’s year-end momentum.
Stock Market Movements: Quick Looks
- Major Indexes: S&P 500 (-0.4%), Nasdaq (-0.5%), Dow (-0.1%).
- Target Slumps: Target shares fell 19.6% after missing quarterly estimates and issuing weak holiday guidance.
- Nvidia Spotlight: All eyes on Nvidia’s post-market earnings, a key market-moving event.
- Treasury Yields: The 10-year yield rose to 4.42%, reflecting optimism about Trump’s economic policies.
- Global Markets: Mixed performances in Europe and Asia; Japan reports fourth consecutive trade deficit.
Deep Look
Wall Street opened Wednesday on a cautious note, with the S&P 500 sliding 0.4% as investors await Nvidia’s earnings report, widely considered the most significant market event remaining in 2024. Nvidia, a leader in AI chip technology, has become a bellwether for the tech sector, with its stock performance often influencing broader market trends.
Target’s Troubles Contrast with Walmart’s Gains
Target’s shares nosedived 19.6% after reporting weaker-than-expected earnings and revenue for the last quarter. The retailer also issued a gloomy forecast for the upcoming holiday season, citing subdued consumer spending.
In contrast, Walmart delivered a strong quarterly performance on Tuesday, with optimistic holiday projections. The divergent results highlight growing scrutiny on U.S. consumer strength amid high inflation and elevated interest rates.
“Consumers are under pressure, but they’re still the linchpin of avoiding a recession,” noted a market analyst.
Nvidia: The Day’s Main Event
The focus of the day—and possibly the rest of the year—is Nvidia’s post-market earnings release. The semiconductor giant, whose chips power much of the booming artificial intelligence industry, has nearly tripled its stock price in 2024.
Nvidia’s previous quarters have consistently exceeded Wall Street’s lofty expectations, making it one of the most influential stocks in the S&P 500. Barclays Capital analysts highlighted that the options market views Nvidia’s earnings as more consequential than the Federal Reserve’s upcoming interest rate meeting.
With a market valuation of $3.6 trillion, Nvidia’s performance holds the potential to sway the broader index significantly.
Treasury Yields and Post-Election Impacts
Treasury yields edged higher, with the 10-year yield reaching 4.42%, up from 4.40% late Tuesday. This reflects market adjustments following President-elect Donald Trump’s victory, which has spurred expectations of faster economic growth and inflation due to anticipated policy changes.
Wells Fargo Investment Institute raised its forecasts for both Treasury yields and the S&P 500’s 2025 year-end target, citing Trump’s growth-focused agenda and reduced regulatory pressures.
Global Market Performance
International markets delivered mixed results:
- Europe: London’s FTSE 100 edged up 0.1% as U.K. inflation hit a six-month high in October.
- Asia: Japan’s Nikkei 225 fell 0.2% after reporting a fourth straight month of trade deficits.
These global developments underscore ongoing economic uncertainties as 2024 draws to a close.
Looking Ahead
Nvidia’s earnings report could provide clarity on market sentiment as Wall Street approaches year-end. Additionally, economic data and geopolitical developments remain critical, with investors closely monitoring Trump’s policy announcements and potential impacts on corporate earnings and consumer spending.
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