Investors are feeling anxious about Nvidia's financial performances, as the tech giant is set to release its quarterly earnings report. After a period of growth in the AI market, U.S. investors are on edge, particularly with the looming potential of a market crash. Wall Street investors are increasingly tense, with the Dow Jones Industrial Average falling 0.4%, closing at 41,091 points. Other major indexes like the S&P 500 and Nasdaq tech index also experienced declines.
According to Sam Stovall, CFRA Research's chief strategist, investors are uneasy about what Nvidia will reveal. With high expectations, the question lingers in the back of everyone's mind: "How much better can it get?" Nvidia's quarterly results could significantly impact not only its own stock but also the tech sector and the broader market, as the company's rallies at the beginning of the year fueled the tech stocks initially. However, AI cost inflation during the last reporting period has made investors wary.
Simultaneously, concerns about the economy have impacted commodity prices. Brent crude, the North Sea benchmark, decreased 0.9% to $78.80 per barrel. US West Texas Intermediate crude dropped 0.8% to $74.72 per barrel. US crude inventories fell by 846,000 barrels to 425.2 million barrels, according to government data. Analysts had predicted a drop of 2.3 million barrels. Matt Smith, lead oil analyst at data firm Kpler, commented: "It's surprising to see oil consumption so low when refinery activity is at a six-week high." Economic slowdown concerns in China have also negatively influenced commodity prices.
Meanwhile, Berkshire Hathaway's shares gained attention before Warren Buffett's 94th birthday, as the company's value surpassed the $1 trillion mark. Nordstrom shares also rose nearly 4% due to the company's positive quarterly revenue growth, despite sector instability. However, US server provider Super Micro Computer encountered significant difficulties, with its shares plummeting nearly 25% to a seven-month low of around $421 following the postponement of its annual report. Short-seller Hindenburg's accusations had already caused the stock to drop on Tuesday. Bath & Body Works stock also fell nearly 7% after a profit warning, as consumers have held back on purchasing items like perfumes and scented candles due to high inflation.
To summarize, investor apprehension surrounding Nvidia's financial data is palpable, with a potential market crash looming upon the release of its quarterly earnings report. The tech giant is anticipated to heavily influence not only its own stock but also the tech sector and broader market, as the prices of commodities and individual stocks have been affected by concerns over demand, inflation, and slowdowns.
