Investment circles are experiencing apprehension concerning Nvidia's financial data.
After a period of AI market growth, U.S. investors are on edge about a potential market crash. The anticipation for Nvidia's quarterly earnings is extremely high, causing tension among Wall Street investors. The Dow Jones Industrial Average dropped 0.4%, closing at 41,091 points. The S&P 500 and Nasdaq tech index both declined as well. "Investors are a bit uneasy about what Nvidia will reveal," stated Sam Stovall, CFRA Research's chief strategist. "With expectations being so high, the question is, how much better can it get?"
Nvidia's quarterly results could significantly impact not only its own stock but also the tech sector and the broader market. Nvidia's rallies initially propelled tech stocks at the beginning of the year. However, AI cost inflation during the last reporting period made investors wary.
Pressure on Commodity Prices
Simultaneously, concerns about the economy impacted commodity prices. While tensions in the Middle East eased somewhat, investor worries over demand persisted. Brent crude, the North Sea benchmark, decreased 0.9% to $78.80 per barrel. US West Texas Intermediate crude dropped 0.8% to $74.72 per barrel. US crude inventories fell by 846,000 barrels to 425.2 million barrels, according to government data. Analysts had predicted a drop of 2.3 million barrels. "It's surprising to see oil consumption so low when refinery activity is at a six-week high," commented Matt Smith, lead oil analyst at data firm Kpler. Economic slowdown concerns in China also influenced prices negatively. "China's demand remains weak," stated Barclays analyst Amarpreet Singh. "No compelling signs of the anticipated recovery in the second half have emerged yet."
Buffett Breaks the $1 Trillion Barrier
Among individual stocks, Berkshire Hathaway's shares gained attention. Two days before Warren Buffett's 94th birthday, the company's value surpassed the $1 trillion mark. Nordstrom shares also rose nearly 4% as the company's revenue grew over 3% during the last quarter, despite sector instability. However, US server provider Super Micro Computer encountered significant difficulties. Its shares plummeted nearly 25% to a seven-month low of around $421 following the postponement of its annual report. Short-seller Hindenburg's accusations had already caused the stock to plummet on Tuesday. Bath & Body Works stock also fell nearly 7% after a profit warning. Consumers have been holding back on purchasing items like perfumes and scented candles due to high inflation.
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The Dow Jones Industrial Average's 0.4% decline could be a sign of wider market uncertainty, given Nvidia's upcoming quarterly earnings and the industry's AI cost inflation concerns. Investors will closely watch Nvidia's results, as its performance could potentially impact not only its own stock but also the tech sector and the broader market.
Despite the easing of Middle East tensions, investor worries over demand continue to influence commodity prices. Brent crude and US West Texas Intermediate crude both experienced decreases, while US crude inventories fell by less than anticipated, according to government data.
