Tuesday morning saw a modest decline in Dow Jones futures, S&P 500 futures, and Nasdaq futures, with Nvidia holding significant influence.
Despite hot inflation reports, the stock market rally performed relatively well last week. While the Nasdaq dropped, it remained above weekly lows. The S&P 500 and Dow Jones also saw modest declines, and the Russell 2000 had a solid week. Walmart saw a slight rise in shares due to strong earnings, while Home Depot faced a decline due to weak same-store sales.
The upcoming Nvidia earnings are expected to play a crucial role in testing the AI-led market rally. The impact of Nvidia’s earnings and guidance will extend beyond just NVDA stock, affecting other players in the market such as AMD, Arm Holdings, Taiwan Semiconductor, Broadcom, Palantir Technologies, Microsoft, and Google’s parent company Alphabet.
Investors are advised to assess their exposure to Nvidia stock and the broader AI sector. It’s a time to exercise caution in making new investments and consider defensive strategies.
On Monday, Capital One Financial announced its acquisition of Discover Financial Services in a $35.3 billion all-stock deal. Additionally, the U.S. revealed plans to award $1.5 billion to GlobalFoundries as part of the U.S. CHIPS Act.
In the current outlook, Dow Jones futures fell slightly, with Intel and Walmart contributing positively while Home Depot provided a minor setback. S&P 500 futures and Nasdaq 100 futures also experienced declines.
It’s important to note that overnight fluctuations in Dow futures and other markets may not necessarily align with trading activity in subsequent regular stock market sessions.
