US Stock Market Declines Ahead of Anticipated NVIDIA Earnings Report

The U.S. stock market declined as attention turned to the quarterly earnings announcement of semiconductor giant Nvidia, scheduled for after the close. Image taken in January 2021 (2024 Reuters/Mike Segar)

[New York, 28th – Reuters] – The U.S. stock market ended lower as attention focused on the upcoming quarterly earnings for semiconductor giant Nvidia (NVDA.O).

Nvidia fell by 2.1%. Its year-to-date gain stands at 154%.

Keith Buchanan, Senior Portfolio Manager at Globalt Investments, stated, “No one knows how long Nvidia’s unexpectedly high forecasts will continue, but obviously, they cannot last forever.”

The company’s guidance for third-quarter (August-October) revenue is about $32.5 billion (plus or minus 2%), which largely matches market expectations. The stock price declined in after-hours trading.

Other semiconductor stocks also faced selling pressure, with Broadcom (AVGO.O) down about 2% and Advanced Micro Devices (AMD.O) down 2.75%.

Alphabet (GOOGL.O), Microsoft (MSFT.O), and Amazon.com (AMZN.O) saw declines of around 1%.

Out of the eleven major sectors of the S&P 500, eight finished in negative territory, with Information Technology (.SPLRCT) and Consumer Discretionary (.SPLRCD) leading the decline.

According to the CME Group’s FedWatch, the market currently predicts a 64% chance that the Federal Reserve will cut rates by 25 basis points (bps) in September, and a 37% chance of a 50 bps cut.

The personal consumption expenditures (PCE) report for July, scheduled for release on the 30th, could provide further clues regarding the Fed’s rate-cutting path.

Super Micro Computer (SMCI.O), which deals with AI servers, plummeted 19%. The company announced a delay in filing its annual report. This followed revelations by U.S. investment research firm Hindenburg Research, which disclosed that it has shorted Super Micro’s stock, claiming there were “accounting manipulations” at the firm.

Investment firm Berkshire Hathaway (BRKa.N), led by renowned investor Warren Buffett, surpassed a market capitalization of $1 trillion. The company’s Class B shares rose approximately 0.9%.

On the S&P 500 (.AD.SPX), the number of declining stocks outnumbered advancing stocks by a ratio of 1.3 to 1.

The total volume on U.S. exchanges was 9.9 billion shares. The average over the last 20 trading days is 11.7 billion shares.

Preliminary figures based on LSEG data. There may be discrepancies in day-over-day comparisons.
※ U.S. stock market

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