Wall Street rebounds Amid Nvidia Watch,Economic Data Delay
NEW YORK – The New York Stock Exchange staged a recovery Monday,despite an initial dip,as investors braced for Nvidia’s earnings report this Wednesday. The results are being closely watched against a backdrop of increasing concern over valuations within the technology sector, particularly those tied to artificial intelligence (AI).
Around 3 p.m. GMT (10 a.m. in Quebec), the Nasdaq composite gained 0.62%, while the S&P 500 rose 0.27%. The Dow Jones Industrial Average remained largely unchanged, down 0.01%.
“All eyes are on Nvidia’s results, expected on Wednesday,” explained Peter Cardillo of Spartan capital Securities to AFP.
As the world’s largest company by market capitalization and a leader in the AI race, Nvidia “will be up to the group to reverse or not the negative trend that has taken hold around the sector,” Cardillo added. Recent weeks have seen growing anxieties that tech valuations have risen too quickly. Intense competition in generative AI advancement has spurred massive investment - tens, even hundreds of billions of dollars – from industry giants.
“The market is in a phase where technology stocks are volatile and where investors are worried about a speculative bubble around AI,” noted Daniel Ives of Wedbush Securities.
Nvidia shares fell 1.23% Monday, closing at $187.82.
The market’s movements this week will also be influenced by a backlog of macroeconomic data releases, delayed by the recent federal government shutdown from October 1st to November 12th. Investors will particularly scrutinize the September U.S. employment report for clues about the Federal Reserve’s potential monetary policy decisions.
Boston Fed President susan Collins stated last week that the threshold for further interest rate cuts was “rather high,” emphasizing the need for “sustainable” deceleration in inflation. Market sentiment regarding a december rate cut has shifted from near-unanimity a month ago to a more divided outlook.
The ten-year yield on American government bonds stood at approximately 4.14%, compared to 4.15% at Friday’s close.
In corporate news, Alphabet (Google’s parent company) rose 5.51% to $291.65 following the announcement of a roughly $4 billion investment from Berkshire Hathaway.Conversely, Dell (-4.91%) and HP (-2.96%) experienced declines after receiving negative ratings from morgan Stanley. Netflix saw a slight increase (+0.28% to $111.53) after a 10-for-1 stock split. Investors are also anticipating Walmart‘s earnings report on Thursday, seeking insights into American consumer spending.
