Nasdaq leads Wall Street lower as Nvidia results loom
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Berkshire Hathaway hits $1 trln in market value for first time
Super Micro Computer falls on delaying annual report
Indexes off: Dow 0.33%, S&P 500 0.63%, Nasdaq 1.21%
Updated at 11:49 a.m. ET/ 1549 GMT
By Johann M Cherian and Purvi Agarwal
Aug 28 (Reuters) -Wall Street's main indexes were lower on Wednesday ahead of Nvidia's earnings, with the Nasdaq leading declines, as focus was squarely on if the recent bull market rally that was led by the AI chip firm and other tech-related shares can be sustained.
The three main indexes have swung between small gains and losses this week, with the Dow .DJI drifting near a record high and the S&P 500 .SPX within 1% of an all-time peak, as investors await Nvidia's NVDA.O results after the bell.
The chip designer's shares were down 2.5%. Options pricing shows traders anticipate a move of around 9.8% in Nvidia's shares on Thursday, a day after it reports earnings, data from analytics firm ORATS showed.
Any disappointment in Nvidia's results could hurt megacaps and other semiconductor stocks, which have led 2024's rally on the prospect of artificial intelligence integration boosting corporate profits.
"Investors are a little nervous about what they're going to see and hear from Nvidia ... since expectations have been so high, you sort of wonder how much better can it get," said Sam Stovall, chief investment strategist at CFRA Research.
"The news itself will be driving not only Nvidia's shares, but the technology sector and the overall market."
Other chip stocks such as Broadcom AVGO.O and Advanced Micro Devices AMD.O fell 1.7% and 2.9%, respectively, with the Philadelphia SE Semiconductor index .SOX down 1.9%.
All the growth stocks were in the red, with Meta META.O down 0.7%, Microsoft MSFT.O lower by 1.1% and Alphabet GOOGL.O declining 1.3%.
At 11:49 a.m. ET, the Dow Jones Industrial Average .DJI was down 137.89 points, or 0.33%, at 41,112.61, the S&P 500 .SPX was down 35.66 points, or 0.63%, at 5,590.14, and the Nasdaq Composite .IXIC was down 214.22 points, or 1.21%, at 17,540.60.
Six of the 11 S&P 500 sectors were lower, led by a 1.5% drop in technology stocks .SPLRCT.
However, bank stocks .SPXBK rose more than 1%, with Wells Fargo WFC.N and Bank of America BAC.N up over 1% each.
Optimism continued to prevail that the U.S. Federal Reserve will lower interest rates at its September meeting after Fed Chair Jerome Powell's support for imminent policy adjustment last week that had sparked broad-based market gains.
Odds of a 25-basis point reduction currently stand at 63.5%, while those of a 50-bps cut are at 36.5%, according to the CME Group's FedWatch Tool.
The Personal Consumption Expenditure report for July, due on Friday, is expected to provide further insight into the pace and magnitude of the central bank's rate-cut trajectory.
Super Micro Computer SMCI.O tumbled 24.8% after the AI server maker said it would delay the filing of its annual report for the fiscal year ended June 30, a day after Hindenburg Research disclosed a short position in the company.
The market value of billionaire Warren Buffett's Berkshire Hathaway BRKa.N surpassed $1 trillion, with the conglomerate's class B shares rising 0.8%.
Declining issues outnumbered advancers for a 1.47-to-1 ratio on the NYSE and a 2.00-to-1 ratio on the Nasdaq.
The S&P index recorded 73 new 52-week highs and one new low, while the Nasdaq recorded 63 new highs and 68 new lows.
Reporting by Johann M Cherian and Purvi Agarwal in Bengaluru; Editing by Pooja Desai and Shounak Dasgupta
Actifs liés
Dernières actualités
Avertissement : Les entités de XM Group proposent à notre plateforme de trading en ligne un service d'exécution uniquement, autorisant une personne à consulter et/ou à utiliser le contenu disponible sur ou via le site internet, qui n'a pas pour but de modifier ou d'élargir cette situation. De tels accès et utilisation sont toujours soumis aux : (i) Conditions générales ; (ii) Avertissements sur les risques et (iii) Avertissement complet. Un tel contenu n'est par conséquent fourni que pour information générale. En particulier, sachez que les contenus de notre plateforme de trading en ligne ne sont ni une sollicitation ni une offre de participation à toute transaction sur les marchés financiers. Le trading sur les marchés financiers implique un niveau significatif de risques pour votre capital.
Tout le matériel publié dans notre Centre de trading en ligne est destiné à des fins de formation / d'information uniquement et ne contient pas – et ne doit pas être considéré comme contenant – des conseils et recommandations en matière de finance, de fiscalité des investissements ou de trading, ou un enregistrement de nos prix de trading ou une offre, une sollicitation, une transaction à propos de tout instrument financier ou bien des promotions financières non sollicitées à votre égard.
Tout contenu tiers, de même que le contenu préparé par XM, tels que les opinions, actualités, études, analyses, prix, autres informations ou liens vers des sites tiers contenus sur ce site internet sont fournis "tels quels", comme commentaires généraux sur le marché et ne constituent pas des conseils en investissement. Dans la mesure où tout contenu est considéré comme de la recherche en investissement, vous devez noter et accepter que le contenu n'a pas été conçu ni préparé conformément aux exigences légales visant à promouvoir l'indépendance de la recherche en investissement et, en tant que tel, il serait considéré comme une communication marketing selon les lois et réglementations applicables. Veuillez vous assurer que vous avez lu et compris notre Avis sur la recherche en investissement non indépendante et notre avertissement sur les risques concernant les informations susdites, qui peuvent consultés ici.
