Tech Stocks Reverse U.S. Indices’ Upward Trend: Nasdaq Falls Ahead of Nvidia Earnings:
U.S. stock markets have experienced sharp fluctuations as the announcement of Nvidia’s earnings approaches.
This has led to a decline in major tech stocks and significantly impacted the leading U.S. indices.
Contents
Market Expectations and Continued Stock Rises
Corporate Returns
Expected Stock Consolidation
Anticipated Economic Impacts
Decline in Tech Stocks
Major U.S. tech stocks declined, negatively impacting Wall Street indices
after the market rose to levels close to its all-time highs.
As the announcement of Nvidia’s earnings approaches, Bloomberg’s “Magnificent Seven” index fell by 1.2%,
affecting the performance of the S&P 500 index.
Meanwhile, the Dow Jones Industrial Average rose to a record level.
Fed Officials’ Statements and Their Impact on the Markets
Jerome Powell, Chairman of the Federal Reserve,
confirmed in the Jackson Hole seminar his expectations for a rate cut in September,
sparking expectations of a broader bull market.
However, investors are cautious about the impact of Nvidia’s earnings on the markets,
as disappointing results could pose a significant risk.
Market Expectations and Continued Stock Rises
Analysts expect strong inflows from corporate buybacks, systematic funds, and individual investors,
which could push stocks higher in the coming weeks.
Market experts also anticipate significant purchases by Commodity Trading Advisors (CTAs), which may contribute to stock gains.
Nvidia Earnings Expectations
Analysts believe that Nvidia’s earnings, to be announced on Wednesday,
will be a key driver of market movement this week.
Expectations for the company’s earnings are high,
with speculation that Nvidia may raise its earnings guidance.
Monitoring the Impact of Major Companies’ Earnings on the Market
Expectations persist that the “Magnificent Seven” companies will post significant earnings growth for the second quarter.
Nvidia’s earnings announcement is expected to significantly impact the market,
potentially more than Powell’s speech at Jackson Hole last week.
Corporate Returns and Their Impact on the Market
Corporate return expectations indicate that performance will be buoyant
following the Federal Reserve’s first rate cut unless the economy is in recession.
This trend may support small and mid-sized companies’ investments in the short term.
Expected Stock Consolidation
Despite expectations for rate cuts, concerns remain about the anticipated consolidation
of stocks around their previous high levels,
especially as we enter one of the worst seasonal periods.
Anticipated Economic Impacts
Upcoming U.S. inflation figures are expected to strengthen the case for anticipated rate cuts,
with expectations that the central bank will continue to support economic expansion.
Tech Stocks Reverse U.S. Indices’ Upward Trend