2024-11-18 21:04:00
The New York Stock Exchange closed in scattered order on Monday, with investors seeking to position themselves after a turbulent post-election sequence, while maintaining a wait-and-see posture before Wednesday’s publication of results from semiconductor giant Nvidia.
The Dow Jones fell 0.13%, while the Nasdaq index gained 0.60% and the broader S&P 500 index gained 0.39%.
The upward movement of some indexes “is linked to interest in buying the dip after last week’s consolidation,” Patrick O’Hare of Briefing.com observed in a note.
Investors have their sights set on a series of results from large companies, including Walmart and Lowe’s (DIY) on Tuesday, Target and TJX (off-label ready-to-wear) on Wednesday, then Gap on Thursday.
But “the biggest news of the week” is the publication of the results of semiconductor giant Nvidia on Wednesday, underlined Art Hogan.
Nvidia “can move the market because the company is one of the early winners of the artificial intelligence (AI) revolution,” he added.
The group became the world’s largest capitalization at the beginning of November after overtaking Apple, displaying a capitalization of approximately 3,480 billion dollars, ahead of the 3,400 billion of the Apple firm.
If the chipmaker’s results are better than expected, “a rebound is expected for semiconductors, but also for the technology sector in general,” he added.
Pending publication, the action of the behemoth fell on Monday (-1.29%) following information published by The Information concerning an overheating problem on the new Blackwell chip, “the most powerful in the world” according to the company, which must be commercialized by the end of the year.
Despite Nvidia’s decline, the semiconductor sector was in demand, including Broadcom (+0.50%), AMD (+2.99%), Micron (+1.21%), Intel (+2.01%) %)and Qualcomm (+2.49%).
Elsewhere on the stock market, the action of Donald Trump’s media group soared at the end of the session, catapulted by information from the Financial Times on the possible takeover of a cryptocurrency exchange platform.
The title of Trump Media and Technology Group (TMTG) accelerated in the last minutes and closed up 16.65%.
Still supported by the prospects of easing regulations promised by Donald Trump, the online brokerage platform Robinhood progressed (+8.29%).
Tesla shone (+5.62%), driven by information from the Bloomberg agency according to which Donald Trump’s team would like to make the definition of a regulatory framework for autonomous vehicles a priority.
This development is considered favorable for the car manufacturer, which wishes to launch its robotaxi in 2026.
In reaction to this information, VTC (tourist vehicle with driver) giant Uber (-5.35%) and its rival Lyft (-4.53%) plunged.
The media group Warner Bros Discovery ended in the green (+2.71%) after announcing an agreement with the North American professional basketball league NBA which puts an end to a dispute dating back several months.
On the bond market, the yield on 10-year US government bonds stood at 4.42%, compared to 4.44% at the close on Friday.
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How should investors position themselves in anticipation of Nvidia’s results?
**Interview with Art Hogan, Chief Market Strategist**
**Interviewer:** Good evening, Art. The market seems to be in a state of cautious anticipation ahead of Nvidia’s earnings report. Can you explain why Nvidia’s results are considered “the biggest news of the week”?
**Art Hogan:** Absolutely. Nvidia has positioned itself at the forefront of the artificial intelligence revolution, which has had far-reaching implications for the entire tech sector. Investors closely monitor their earnings because strong results could indicate robust demand for their products, which, in turn, could boost confidence across the semiconductor and broader technology markets.
**Interviewer:** You mentioned Nvidia’s market capitalization recently surpassing Apple’s. What does this mean for investor sentiment?
**Art Hogan:** It speaks volumes about Nvidia’s current influence and the high expectations surrounding AI developments. When a company like Nvidia, which was once primarily focused on gaming graphics, evolves into a leader in AI technology, it creates a sense of optimism. Investors are betting on future growth—a strong quarter could reinforce that sentiment.
**Interviewer:** So, if Nvidia posts better-than-expected earnings, how do you anticipate the market will react?
**Art Hogan:** If Nvidia beats expectations, we could see a significant rebound in the semiconductor sector, which has faced its fair share of headwinds recently. More importantly, it could trigger a rally in the broader tech sector as well, as other companies within that space often align their performance with Nvidia’s success.
**Interviewer:** On the other hand, if the results disappoint, what could be the fallout?
**Art Hogan:** A disappointing report could have the opposite effect—potentially leading to a sell-off in technology stocks. Given how much Nvidia’s performance impacts market sentiment, a negative surprise could heighten fears about the strength of the AI market and could result in a broader tech pullback.
**Interviewer:** Lastly, what advice would you give to investors ahead of these earnings results?
**Art Hogan:** Stay informed and be prepared for volatility. Earnings can be a significant market mover, especially for a company like Nvidia. Diversifying your investments and not putting all your eggs in one basket can help mitigate risks, especially in an environment as dynamic as the tech market right now.