Nvidia Earnings, Fed Speeches Top Investor Focus Today: U.S. stock markets traded cautiously on Monday as investors awaited key earnings from Nvidia (NASDAQ: NVDA) and comments from several Federal Reserve officials. By mid-morning, the Dow Jones Industrial Average was down 95 points (-0.2%), the S&P 500 dipped 4 points (-0.1%), while the NASDAQ Composite rose 25 points (+0.1%).
This subdued start follows last week’s pullback, which marked a reversal from post-election highs. Federal Reserve Chair Jerome Powell’s comments that the central bank is not “in a hurry” to cut interest rates further weighed on sentiment.
Stock in News: Nvidia Earnings in Focus
Investors are closely monitoring Nvidia’s quarterly earnings, due Wednesday. The chipmaker, a leader in artificial intelligence (AI), has seen its stock surge nearly 200% this year. Analysts expect Nvidia to report an 82.8% increase in third-quarter sales to $33.13 billion—its slowest growth in six quarters. Nvidia’s performance is critical as its chips are pivotal for the AI industry, making its results a bellwether for tech stocks and broader equity markets.
Market participants are also eyeing earnings reports from major retailers like Walmart (NYSE: WMT) and Lowe’s (NYSE: LOW) for insights into consumer spending trends. So far, 93% of S&P 500 companies have reported earnings, with 74% surpassing earnings expectations and 62% beating revenue forecasts, according to FactSet.
Crude Oil News: Prices Rise Amid Geopolitical Concerns
Crude oil prices increased on Monday following escalating tensions between Russia and Ukraine. By 09:35 ET, U.S. crude futures rose 1.8% to $68.13 a barrel, while Brent crude climbed 1.8% to $72.31.
Reports indicate that Ukraine has received U.S. authorization to strike deeper into Russian territory using American-made weapons. This development follows claims of North Korean troops bolstering Russian forces. Although the conflict has not significantly disrupted Russian oil exports, potential strikes on oil infrastructure could tighten supply and lift prices.
Despite Monday’s gains, last week saw crude prices slide over 3% amid weak economic data from China. An International Energy Agency forecast that global oil supply will outpace demand in 2025, even with production cuts.
Today’s Events: Fed Speeches and PMI Data in Focus
This week’s U.S. economic calendar includes key manufacturing and services PMI data on Friday, providing early signals on corporate reactions to proposed trade tariffs. Investors will also hear from Federal Reserve officials, including Chicago Fed President Austan Goolsbee, Kansas Fed President Jeffrey Schmid, and Cleveland Fed President Beth Hammack. Their remarks could provide further clues on the central bank’s interest rate trajectory.
Other Key Developments
Tesla Gains on Regulatory Hopes
Tesla (NASDAQ: TSLA) shares soared over 6% after reports suggested the incoming Trump administration might prioritize regulations to accelerate the adoption of fully self-driving vehicles. This aligns with broader market optimism, driving gains in tech-heavy indices like the NASDAQ Composite.
Spirit Airlines Files for Bankruptcy
Spirit Airlines (NYSE: SAVE) entered bankruptcy protection following prolonged financial losses. The airline reached a prearranged deal with bondholders and plans to exit bankruptcy by early 2024.
Conclusion: US Stock Market Outlook
Analysts predict potential volatility as markets await Nvidia’s earnings and Fed commentary. RBC Capital Markets strategists noted that the S&P 500 could face a pullback of 5%-10%, citing stretched valuations, bullish sentiment, and futures positioning.
Investors remain focused on AI trends, consumer spending data, and geopolitical developments, which could shape the broader market trajectory.
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Editor’s Desk