|
All
eyes will be on whether semiconductor bellwether Nvidia's
first-quarter results, due after market close, can meet sky-high
expectations and sustain a rally in shares of the company and
other AI-related stocks.
Nvidia has emerged as the third-largest U.S. company by market
value after a more than 92% surge in its shares this year and an
over three-fold jump in 2023.
"Despite the stock's incredible recent performance, there's
tension in the market, with investors eager to see if Nvidia's
impressive momentum from 2023 has carried into early 2024," said
Sam North, analyst at investment platform eToro.
"We should note that the bar is set pretty high, and another
double-digit beat and raise might be a tall order."
The company's shares were down 0.4% in premarket trading, after
rising more than 3% over the past two days.
Nvidia's results will test the strength of Wall Street's recent
bullish run that has carried all three major indexes to record
highs this month, driven by a strong earnings season as well as
renewed hopes for interest-rate cuts and a so-called soft
landing for the U.S. economy.
The tech-heavy Nasdaq and the benchmark S&P 500 closed at fresh
record highs on Tuesday.
Market participants are also keenly awaiting minutes from the
U.S. central bank's latest policy meeting, due at 2 p.m. ET, for
more clarity on the timing of a rate cut. Several policymakers
have reiterated the need to wait for more signs of easing
inflation before cutting rates.
Traders see near 69% odds of the Fed cutting rates in September
by at least 25 basis points, according to CME's FedWatch Tool.
At 7:00 a.m. ET, Dow e-minis were down 43 points, or 0.11%, S&P
500 e-minis were down 7.5 points, or 0.14%, and Nasdaq 100
e-minis were down 13.75 points, or 0.07%.
Shares of retailer Target dropped 8.1% on weak quarterly results
and second-quarter forecasts for profit and comparable sales
that were below expectations.
Apparel retailer Urban Outfitters climbed 5.8% after
first-quarter results beat estimates on strong demand.
Lululemon Athletica dropped 4.3% after the athletic apparel
retailer announced the departure of Chief Product Officer Sun
Choe.
(Reporting by Ankika Biswas and Lisa Mattackal in Bengaluru;
Editing by Devika Syamnath)
[© 2024 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
