U.S. stocks tumbled on Tuesday after fears of a nuclear escalation of the war between Russia and Ukraine roiled markets, taking attention away from Nvidia’s (NVDA) profits and other corporate results.
The Dow Jones Industrial Average (^DJI) led the declines, down about 0.8%. The benchmark S&P 500 (^GSPC) fell about 0.5%, falling below election outbreak levels, while the tech-heavy Nasdaq Composite (^IXIC) also fell about 0.5% after a mixed day for the major gauges.
Stocks are retreating as investors assess news that President Vladimir Putin has signed a revised nuclear doctrine that allows Russia to expand its use of nuclear weapons.
The changes mean that a large-scale airstrike, backed by a nuclear energy partner, could trigger a nuclear weapons response. It comes just days after President Joe Biden gave Ukraine the green light to use US long-range missiles to invade Russia. Ukraine carried out its first airstrike in a border area on Tuesday morning.
US bond prices rose along with gains for gold (GC=F) and other safe havens as risky trading took off. Government bond yields – which move inversely to bond prices – fell, while the 10-year benchmark yield (^TNX) fell 5 basis points to around 4.36%. Gold rose almost 1% to around $2,630 an ounce.
Bitcoin (BTC-USD) prices rose more than 1.2% to trade above $91,500 per token.
The geopolitical situation has sidelined issues such as corporate profits, President-elect Trump’s cabinet choices, interest rate movements and Wall Street’s view on stock prices.
Retailers Walmart ( WMT ) and Lowe’s ( LOW ) posted quarterly results before the bell, with investors watching for clues about consumer resilience. Walmart shares rose on a boost to expectations following a strong quarter. Lowe’s also underperformed on earnings and sales, but the DIY giant’s shares fell on the negative sales outlook.
Meanwhile, the countdown to Nvidia’s earnings began on Wednesday, seen as a test of the AI ​​trading that has fueled gains on Wall Street. The chipmaker’s shares headed higher in premarket trading after being bruised by a report of overheating problems with its flagship new AI product.
Goldman Sachs strategists said they expect outperformance from Nvidia and its “Magnificent Seven” tech megacap peers to decline next year, in an S&P 500 (^GSPC) forecast that includes a target of 6,500 uses.
LIVE 6 updates
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Stock prices are falling due to the escalation of the war between Russia and Ukraine
US stocks fell on Tuesday after President Vladimir Putin signed a revised nuclear doctrine, allowing Russia to expand its use of nuclear weapons in a possible escalation of the war between Russia and Ukraine.
The Dow Jones Industrial Average (^DJI) led the declines, down about 0.8%. The benchmark S&P 500 (^GSPC) fell about 0.5%, falling below election outbreak levels, while the tech-heavy Nasdaq Composite (^IXIC) also fell about 0.5% after a mixed day for the major gauges.
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Super Micro Computer rises more than 25% after filing plan to avoid delisting from the Nasdaq stock exchange
Super Micro Computer (SMCI), an AI server maker and Nvidia (NVDA) partner, rose more than 25% premarket on Tuesday. The sprint higher came after the company filed Monday with the Securities and Exchange Commission saying it had filed a compliance plan with Nasdaq to avoid delisting.
Super Micro also boosted its shares, saying it had hired a new accountant, BDO, after its previous accountant, Ernst & Young, resigned in late October.
The company was in hot water with the Nasdaq after delaying both its annual and quarterly filings with the SEC following a damning report from short-selling firm Hindenburg Research. The report sheds light on possible accounting malpractices, export control violations and murky relationships between top executives and Super Micro partners. The company is reportedly under investigation by the Justice Department.
Even with this week’s rise, shares are down about 56% over the past three months. After surging as much as 300% earlier this year, SMCI stock is now down more than 20% in 2024.
Read the full story here.
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Good morning. This is what’s happening today.
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Walmart’s e-commerce business is still on fire
Walmart (WMT) has worked very hard behind the scenes over the past two years to become a major player online. The retailer has expanded its range online and refined the ‘buy online, pick up in store’ functionality.
The efforts remain visible on the winning days.
Here are the company’s e-commerce results by division for the third quarter, reported this morning:
These results are striking for two reasons: 1) Walmart isn’t exactly a startup; 2) competition online is as fierce as ever.
I’m speaking with Walmart CFO John David Rainey live at 9:15 a.m. ET on Yahoo Finance. Don’t worry, we’ll ask him about these online sales figures!
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How Goldman sees the Mag 7 transaction happening in 2025
Hat tip to Goldman Sachs’ chief U.S. equity strategist David Kostin for mentioning specific stocks that just fell in his piece on the 2025 outlook.
So often, these year-end works of art from investment bank strategists simply serve the objectives of the S&P 500 (^GSPC), explaining various underlying scenarios. But usually not stock predictions.
Kostin expects another year of strong performance for the Mag 7 business, just not as popular as in recent years.
Kostin says:
This is a good point by Kostin and contradicts all these Mag 7 stocks that are trading at rich prices and have good prospects for earnings growth. There’s only so far you can push a stock price based on reasonable future financial assumptions!
You can shop around for Mag 7 valuations on Yahoo Finance’s new stock comparison tool here.
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If there’s one thing that could trip up Nvidia
As I noted in our blog on Monday, expectations for Nvidia’s (NVDA) earnings and prospects are very robust, to say the least.
If there’s one thing that could derail bullish trading the morning after earnings reports, it’s Nvidia’s guidance. While it will likely be above consensus, it may not be above consensus enough given the dynamics surrounding demand for Blackwell chips. Nvidia could choose to go stronger with guidance when it reports in about three months.
Important point about this from Stifel analyst Ruben Roy in a note this morning:
