Markets today: Stocks fall before Nvidia’s make-or-break moment
BNN Bloomberg
Big tech dragged the stock market away from its all-time highs, with Wall Street awaiting Nvidia Corp.’s earnings on Wednesday for confirmation the chipmaker can meet the lofty expectations set by the artificial-intelligence boom.
While the ongoing earnings season has so far reaffirmed the view that Corporate America is holding up well, the reporting period has been mixed for the “Magnificent Seven” megacaps. Ahead of the chipmaker’s numbers, some traders decided to lock in profits — with the market also weighing a report that Microsoft Corp. is developing a networking card as an alternative to the one supplied by Nvidia.
The bar is high for the company at the heart of the AI revolution — which boasts the best performance in the S&P 500 this year after more than tripling in 2023. Nvidia’s revenue is expected to be buoyed by soaring demand in its data-center business. AI should remain strong, especially with Meta Platforms Inc. and Tesla Inc. loading up on graphics processing units, Susquehanna said.
To Matt Maley at Miller Tabak + Co., while bets are that Nvidia will report solid earnings and forecasts, one thing to keep in mind is that the stock has not always responded well to fabulous results.
