Wall Street indexes fell at the start of trading on Wednesday, at the same time as a decline in the shares of the big artificial intelligence company « NVIDIA» By more than 2.4 percent, ahead of the release of the financial results for the third quarter of 2024.
Shares in Nvidia fell 2.44 percent at 3:20pm GMT, with Nvidia due to announce its results after the close of session on Wednesday amid concerns over what the numbers might reveal about the artificial intelligence boom that pushed the company’s profits company to record levels. recently.
Shares of retailer Target also fell by about 21 percent, after third-quarter earnings reports showed a slowdown in sales and net profits due to the impact of escalating tensions between Russia and Ukraine on confidence. investors.
Among other technology stocks, Tesla’s stock fell about 1.3 percent, with Amazon’s stock falling 1.4 percent, and Consumer Electronics’ stock falling 1 percent.
As a result of these declines, the Nasdaq index fell more than one percent to 18,754 points. The Dow Jones industrial average fell 181 points to 43,087 points, and the S&P 500 index fell 0.87 percent to 5,865 points.
In addition to quarterly corporate earnings, markets are still assessing expectations for a rate cut by the US Federal Reserve, so all eyes are on statements from members of the Monetary Policy Committee expected later this year today, including Lisa Cook, Michelle Bowman, and Susan Collins.
Meanwhile, traders have raised expectations of the Federal Reserve’s ability to keep interest rates unchanged at its December meeting, thanks to strong economic data and persistent signs of inflation, and see a 44.5 percent chance stopped next month, according to FedWatch Data.
2024-11-20 16:46:00
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How could Target’s earnings report and its challenges due to geopolitical tensions affect consumer behavior and sales strategies for other retail companies during the holiday season?
Guest 1: Can you elaborate on the concerns surrounding Nvidia’s upcoming earnings report? What key indicators are investors looking for in the report that might affect the company’s stock price?
Guest 2: Absolutely. With the recent boom in artificial intelligence, investors are expecting to see these trends continue to drive Nvidia’s bottom line. However, there are concerns that the company may have reached a saturation point in the market or that competitors could emerge to challenge their dominance. Additionally, there are questions about how much of this growth is sustainable in the long term.
Guest 1: That makes sense. How about the impact of geopolitical tensions on the market overall? Can you talk about how Target’s earnings being impacted specifically, and what this means for other retail companies going into the holiday season?
Guest 2: Yes, the Russia-Ukraine conflict has certainly put a damper on consumer confidence, which is evident in Target’s earnings report. Other retailers are likely to feel this impact as well, particularly those that are more vulnerable to economic fluctuations. It will be important to see how these companies adjust their strategies to weather this uncertainty.
Guest 1: Moving on to interest rates, what do you see as the main takeaways from the recent economic data and the shift in Fed expectations?
Guest 2: The strong economic data and persistent inflation have increased pressure on the Fed to continue raising rates. However, recent signals from the central bank indicate that they may be considering pausing rate hikes sooner rather than later. This uncertainty around future interest rate policy has led to increased market volatility, particularly in the tech sector.
Guest 1: can you discuss the impact of today’s expected statements from members of the Monetary Policy Committee? Are there any specific policies or signals that could move the markets?
Guest 2: Today’s statements from the Fed are always closely watched, as they provide insight into the central bank’s thinking. If members signal a less aggressive approach to rate hikes, it could lead to a rally in the markets. However, hawkish statements could exacerbate the current selloff, especially in the tech sector.
