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U.S. stocks were largely flat as investors awaited Nvidia’s earnings report due after the market close.
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Markets expect earnings to rise again, but there is also caution about delays in chip trading.
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Traders are also looking to comments from the Atlanta Federal Reserve Bank chairman for further clues on rate cuts.
U.S. stocks fell slightly on Wednesday as traders awaited Nvidia’s upcoming earnings report. All three benchmark indexes fell slightly into the red, while Nvidia shares traded 1% higher.
Expectations are high for the chipmaker. Investors are hoping for another profit breach and are eager to see whether the massive investment in AI will pay off for Nvidia’s customers.
The company’s results could trigger a big move in the market. Goldman Sachs said Tuesday that the report could trigger a $300 billion move in Nvidia’s stock this week based on options prices.
The stock is already trading near record highs, increasing the risk that a small setback could trigger a major drop.
“For equities, all attention is now focused on Nvidia’s earnings release tonight, which has helped drive significant moves over the past few quarters,” Deutsche Bank strategists said in a note Wednesday morning. “Keep in mind that Nvidia’s stock price is already up +159% year-over-year, making it the best-performing in the entire S&P 500, and is up over +1,000% since its October 2022 low.”
Traders are also awaiting comments from Atlanta Fed President Raphael Bostic, who is scheduled to speak after the closing bell. His remarks could provide more direction on the path of Fed rate cuts this year, with investors pricing in as much as 150 basis points of cuts by year-end, according to the CME FedWatch tool.
Here’s where the US indices stood shortly after the opening bell on Monday:
Here’s what else is happening today:
In commodities, bonds and crypto:
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West Texas Intermediate crude fell 1.02% to $74.75 a barrel. Brent crude, the international benchmark, fell 0.92% to $77.93 a barrel.
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Gold fell 0.9% to $2,502.25 an ounce.
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The yield on 10-year government bonds remained stable at 3.825%.
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Bitcoin fell 4% to $59,827.
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