Wall Street is experiencing a wave of risk-off sentiment on Wednesday as traders adopt a cautious stance ahead of Nvidia Corp. (NVDA) earnings, set to be released after the market close. The tech sector is particularly vulnerable, with chipmakers and tech stocks broadly declining. At midday trading in New York, all major equity indices were in the red.
The iShares Semiconductor ETF (SOXX) fell 2%, underperforming the broader tech-heavy Nasdaq 100, down 1.1%. The CBOE Volatility Index or VIX, a key barometer of market fear, rose 8%.
As the last of the Magnificent Seven megacaps to report earnings, Nvidia’s results are viewed as a crucial indicator of whether the recent market rebound has more room to run, potentially pushing toward new all-time highs, or if it’s time for investors to dial back risk.
Key metrics to watch include whether Nvidia surpasses the projected $28.7 billion in quarterly revenue — a staggering 156% increase from the same quarter last year — and $0.645 earnings per share, more than triple from the same period in 2022. Nvidia’s forward guidance will also be critical, as investors seek insight into the demand for its leading AI-related chips and any challenges posed by China.
In a significant achievement during Wednesday’s session, Warren Buffett’s Berkshire Hathaway Inc. (BRK) reached the milestone of a $1 trillion market valuation.
The U.S. dollar is showing a modest recovery, up 0.4% after closing Tuesday at its lowest level since July 2023. Treasury yields remain stable, while gold is struggling, down 0.6%, with silver experiencing a sharper 2% decline.
Oil prices continue to fall, with WTI crude down 1.3%, as traders unload the risk premium amid easing geopolitical tensions in the Middle East and less concerning Libyan production disruptions than initially feared.
Bitcoin (BTC/USD) remains under pressure, down 1% to $58,850, following a more than 7% decline over the past two sessions.
Major Indices Price Chg %
* Dow Jones 41,053.09 -0.5%
* S&P 500 5,592.49 -0.6%
* Russell 2000 2,191.39 -0.6%
* Nasdaq 100 19,362.15 -1.1%
According to Benzinga Pro data:
* The SPDR S&P 500 ETF Trust (SPY) was 0.7% down to $557.94.
* The SPDR Dow Jones Industrial Average (DIA) eased down 0.4% to $411.11.
* The tech-heavy Invesco QQQ Trust Series (QQQ) declined 1.2% to $470.98.
* The iShares Russell 2000 ETF (IWM) fell 0.7% to $217.34.
* The Financials Select Sector SPDR Fund (XLF) outperformed, up by 0.2%.
* The Technology Select Sector SPDR Fund (XLK) lagged, down by 1.5%.
Super Micro Computer Inc. (SMCI) plunged 26% after announcing it won’t meet the deadline to file its annual Form 10-K for the fiscal year ended June 30. This comes just a day after short-seller Hindenburg Research released a report accusing the company of accounting manipulation.
Other crypto-related stocks weakened, with CleanSpark Inc. (CLSK), Coinbase Inc. (COIN), and Marathon Digital Holdings Inc. (MARA) down 5.3%, 4.7% and 4.6% respectively.
Chewy Inc. (CHWY) rallied 14% in reaction to its upbeat quarterly earnings. Other stocks reacting to company earnings were Abercrombie & Fitch Co (ANF) down 17%, Ambarella Inc. (AMBA) up 9%, Bath & Body Works, Inc. (BBWI) down 6%, Box Inc. (BOX) up 7.5%, Donaldson Company (DCI) down 4.3%, Foot Locker Inc. (FL) down 12%, Nordstrom Inc. (JWN) up 4%, PVH Corp. (PVH) up 6.6%, SentinelOne Inc. (S) down 2% and J.M. Smucker Company (SJM) down 5.8%.
Companies reporting after the close included Nvidia Corp., Salesforce Inc. (CRM), CrowdStrike Holdings Inc. (CRWD), HP Inc. (HPQ), Veeva Systems Inc. (VEEV), NetApp Inc. (NTAP), Pure Storage Inc. (PSTG), Cooper Companies Inc (COO), Okta Inc. (OKTA), Nutanix Inc. (NTNX), Affirm Holdings Inc. (AFRM), Five Below Inc. (FIVE) and Victoria Secret & Co. (VSCO).
