Wall Street experiences pressure due to the financial reports of Nvidia.
After a prolonged period of AI boom, US investors are apprehensive about a potential crash. The anticipation for Nvidia's quarterly earnings is extraordinarily high, leading to a tense atmosphere on Wall Street.
Investors are worrying about Nvidia's financial report. The Dow Jones Industrial Average, composed of leading stocks, ended the day down 0.4 percent at 41,091 points. The S&P 500, a broader index, dropped 0.6 percent to 5,592 points. The tech-focused Nasdaq index slipped by over one percent to 17,556. Sam Stovall, chief strategist at CFRA Research, stated, "Investors are somewhat anxious about what Nvidia will reveal. The question is, how much more impressive can it be?"
Nvidia's performance could significantly impact not only its own stock but also the tech sector and the broader market. Nvidia's surge propelled tech stocks upwards at the start of the year. However, during the last earnings period, AI-related cost inflation unsettled investors.
Pressure on commodity prices
Meanwhile, concerns about the economy put a strain on commodity prices. The unease in the Middle East lessened to some extent, but investors' apprehensions about demand persisted. North Sea oil Brent fell 0.9 percent to $78.8 per barrel. US oil WTI dipped 0.8 percent to $74.72 per barrel. US oil reserves decreased by 846,000 barrels to 425.2 million barrels in the previous week, as per government data. Analysts had predicted a decline of 2.3 million barrels. Matt Smith, chief oil analyst at data firm Kpler, commented, "It's astonishing that oil consumption is so low given that refinery activity is at a six-week high." Worries about the slowing Chinese economy also affected prices. "China's demand remains sluggish," said Amarpreet Singh, analyst at UK bank Barclays. "We have yet to see convincing evidence of the anticipated recovery in the second half."
Buffett surpasses the $1 billion milestone
In individual stocks, Berkshire Hathaway shares attracted attention. Two days before Warren Buffett's 94th birthday, the company's value surpassed the $1 billion mark. Investors also showed interest in Nordstrom shares. Nordstrom's stock rose approximately 4 percent. Nordstrom's revenue increased by more than 3 percent in the last quarter, despite facing industry-wide challenges. However, US server provider Super Micro Computer faced significant pressure. The company's shares plummeted nearly a quarter to around $421, a seven-month low, following the delay of its annual report. Hindenburg Research's accusations had already caused the stock to plummet on Tuesday. Bath & Body Works shares also plummeted after the company revised its forecast. With inflation remaining high, consumers are holding back on purchasing items like perfumes and scented candles.
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In light of the anticipation, the Commission has urged investors to closely consider Nvidia's financial report and potential implications for the tech sector. Despite the current apprehension, the Commission believes that well-informed decision-making can help mitigate potential risks.
Recently, the Commission has recommended strengthening disclosure requirements for tech companies, aiming to enhance transparency and investor confidence in this crucial sector.
