US Stock Market Declines as Nvidia Faces Investor Concerns Ahead of Earnings Report

The US stock market closed lower with the S&P 500 and Nasdaq Composite down. Photographed in January 2021 (2024 Reuters/Mike Segar)

[New York, 26th Reuters] – The US stock market closed lower with the S&P 500 (.SPX) , opens new tab and Nasdaq Composite (.IXIC) , opens new tab down. Semiconductor giant Nvidia (NVDA.O) , opens new tab has been sold off in anticipation of its quarterly earnings report due on the 28th.

The Dow Jones Industrial Average (.DJI) , opens new tab finished in positive territory. Gains were supported by buying interest in heavy machinery manufacturer Caterpillar (CAT.N) , opens new tab and major credit card company American Express (AmEx) (AXP.N) , opens new tab.

Markets are focused on the personal consumption expenditures (PCE) report for July due on the 30th, as they try to gauge the direction of the US Federal Reserve’s monetary policy.

Nvidia fell 2.25%. The company’s earnings report is the most anticipated event of the week, and concerns have arisen that unless the forecast is exceptionally good, it could negatively impact other AI-related stocks such as Microsoft (MSFT.O) , opens new tab, Alphabet (GOOGL.O) , opens new tab, and Meta Platforms (META.O) , opens new tab.

Chinese e-commerce site “Temu” operator PDD Holdings’ US-listed stock (PDD.O) , opens new tab plummeted nearly 29%. This was due to second-quarter sales falling short of market expectations.

Tesla (TSLA.O) , opens new tab also fell 3.2%. Canada announced it would align with the US and EU and impose a 100% tariff on electric vehicles (EVs) imported from China.

By sector, information technology (.SPLRCT) , opens new tab and consumer discretionary (.SPLRCD) , opens new tab were the leading decliners, while energy (.SPNY) , opens new tab rose by 1.11%. Concerns over oil supply heightened due to tensions in the Middle East and reports of Libya stopping oil production.

Boeing (BA.N) , opens new tab dropped 0.85%. NASA announced on the 24th that two astronauts who arrived at the International Space Station (ISS) in June aboard Boeing’s new spacecraft Starliner would need to return on a SpaceX spacecraft early next year, as they are unable to come back.

In the S&P 500 (.AD.SPX) , opens new tab, the number of advancing issues exceeded declining issues by a ratio of 1.1 to 1. However, in the overall US stock market (.AD.US) , opens new tab, declining issues outnumbered advancing ones by a ratio of 1.2 to 1.

The total volume on US exchanges was 9.5 billion shares. The average over the last 20 trading days is 11.9 billion shares.

These are provisional figures based on LSEG data. There may be discrepancies in comparisons with the previous day.
*US Stock Market

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