Wall St slips as Russia-Ukraine tensions escalate ahead of Nvidia earnings
Target falls over 20% after muted holiday-quarter sales forecast
Nvidia falls over 2% before results due after market close
Indexes down: Dow 0.30%, S&P 500 0.69%, Nasdaq 0.97%
Updates with mid-session trading
By Abigail Summerville and Lisa Pauline Mattackal
Nov 20 (Reuters) -Wall Street's main indexes dipped onWednesday, taking a break from the prior session's rally as investors worried about escalationof Russia-Ukraine tensions and weak results from Target, while awaiting earnings frommegacap Nvidia.
Stocks fellafter a report said Ukrainefired long-range British Storm Shadow missiles into Russian territory. On Tuesday,Ukraine launchedU.S.-made ATACMS missiles into Russia, and Russia announcedit had lowered the threshold for nuclear action.
Wall Street's "fear gauge" .VIX jumped to 18.79 before easing to 18.04, still at its highest since the Nov. 5 U.S. presidential election.
"It's gotten a little more defensive today after a strong rally yesterday from growth stocks and the tech sector," said James Regan, Director of Wealth Management Research at D.A. Davidson
"Maybe there's a conservative view ahead of Nvidia earnings or a broader reaction from Target's earnings which is a consumer bellwether. There are also more geopolitical concerns with tensions in Ukraine and Russia and the U.S. evacuating embassies," Regan said.
AI leader NvidiaNVDA.O fell 2.2% ahead of itsresults that are scheduled for afterthe bell.The index heavyweight dragged the Information Technology sector .SPLRCT down 1.15%, as well as the tech-heavy Nasdaq.
Target TGT.N plunged 20.7% after the retailer forecast holiday-quarter comparable sales and profit below Wall Streetexpectations following a third-quarter estimate miss.
The consumer discretionary .SPLRCD index was the biggest sectoral decliner, falling 1.3%.
Growth stocks like Tesla TSLA.O and Amazon.com AMZN.O shed 1.5% and 1.6%, respectively.
All eyes remained onNvidia, which has nearly tripled in value this year, accounting for about 20% of the S&P 500's .SPX returns over the last 12 months, according to BofA Global Research.
However, given the lofty earnings expectations, the company could struggle to impress investors. Options traders are primed for a nearly $300-billion swing in Nvidia's market value after the results.
"We're starting to see commentary from larger companies that have been deploying capital in the AI, tech spend space talking about examples of how that spend is converting to either higher revenue or cost savings. That bodes well for companies like Nvidia that are on the picks and shovels side of that tech, AI spend trade," said Bill Merz, head of Capital Markets Research for U.S. Bank's asset management group.
At 2:10 p.m. ET, the Dow Jones Industrial Average .DJI fell 131.56 points, or 0.30%, to 43,137.38, the S&P 500 .SPX lost 40.45 points, or 0.69%, to 5,876.53 and the Nasdaq Composite .IXIC lost 183.64 points, or 0.97%, to 18,803.83.
Cryptocurrency stocks ticked higher as bitcoin jumped above $94,000, with MicroStrategy MSTR.O and MARA Holdings MARA.O up 14.5% and 17.7%%, respectively.
Traders have increased bets on the U.S. central bank leaving interest rates unchanged at its December meeting in the wake of strong economic data and signs of persistent inflation.
Declining issues outnumbered advancers by a 2.17-to-1 ratio on the NYSE and a 1.74-to-1 ratio on the Nasdaq.
The S&P 500 posted 28 new 52-week highs and 12 new lows while the Nasdaq Composite recorded 81 new highs and 138 new lows.
Nvidia earnings moves https://reut.rs/40S2EOg
Reporting by Abigail Summerville in New York; additional reporting by Lisa Mattackal and Purvi Agarwal in Bengaluru; Editing by David Gregorio
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