The S&P 500 and Nasdaq eked out modest gains Tuesday as all eyes turned to Nvidia’s highly anticipated earnings report, expected after Wednesday’s close.
The S&P 500 inched up 0.16%, landing at 4,443.70, while the Nasdaq Composite mirrored that movement, climbing 0.16% to 13,276.42.
Meanwhile, the Dow Jones Industrial Average edged up a mere 9.98 points, or 0.03%, to close at 34,465.60, marking its second consecutive record high.
Investors are holding their breath as Nvidia, the tech sector’s linchpin, prepares to unveil its fiscal second-quarter results.
The graphics processing powerhouse, a major player in the AI revolution, saw its shares rise by 1.5% on Tuesday.
Nvidia’s performance is now seen as a barometer for the broader tech market, with its earnings poised to either reinforce or upend the current market sentiment.
“There’s very little economic data of importance until after Nvidia, so you are in kind of a wait-and-see [situation],” said Ross Mayfield, an analyst at Baird.
“The trend in the market right now is a rotation away from tech and so Nvidia could change all of that tomorrow, but until then, I think the predominant trend in the market is going to be to stay put, and you kind of have this light volume, listless market as you wait.”
This wait-and-see attitude comes as investors seek stability following a tough start to the month.
Optimism grew last week when Federal Reserve Chair Jerome Powell hinted at a potential rate cut, though he left the timing and scale of the move uncertain.
Market sentiment suggests a unanimous expectation of at least a 25 basis point rate cut at the Fed’s upcoming policy meeting on September 17-18, according to CME Group’s FedWatch Tool.
As the business world waits for Nvidia’s earnings, this anticipated cut looms large, potentially setting the stage for the next big market move.
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