Stocks dipped on Wednesday, primarily due to a decline in the tech sector, which exerted downward pressure on broader markets. This pullback followed the Dow’s record closing high on Tuesday.Despite a partial recovery late in the session, major indexes ended in negative territory. The tech-centric Nasdaq dropped 198.79 points or 1.1% to 17,556.03, the S&P 500 fell by 33.62 points or 0.6% to 5,592.18, and the Dow declined 159.08 points or 0.4% to 41,091.42.Wall Street’s weakness was partly due to investor jitters ahead of Nvidia’s (NVDA) fiscal Q2 earnings report, due after market close. Nvidia shares fell 2.1% on the day, erasing the 1.5% gain from Tuesday.Analysts polled by Thomson Reuters forecast Nvidia’s earnings at $0.64 per share on revenues of $28.7 billion for the quarter. According to Dan Coatsworth, investment analyst at AJ Bell, beating earnings forecasts typically boosts share prices but may not suffice for Nvidia, given its perceived resilience. The pivotal factor is evidence of strong AI demand, as well as clarifications on any delays to its new Blackwell chip. Failure to meet these expectations could trigger a global equity sell-off.Investors were also cautious ahead of the Commerce Department’s report on July’s personal income and spending, which includes inflation metrics favored by the Federal Reserve. Economists anticipate consumer price growth to inch up to 2.6% in July from 2.5% in June, and core consumer price growth to rise to 2.7% from 2.6%.Although this data isn’t expected to change the optimism that the Fed will lower rates next month, it could alter expectations about the pace of rate cuts. During his recent Jackson Hole speech, Fed Chair Jerome Powell indicated that policy adjustments are imminent but stressed that future rate cuts depend on incoming data, the evolving outlook, and risk assessments.### Sector NewsComputer hardware stocks experienced significant weakness, pulling the Nasdaq down. The NYSE Arca Computer Hardware Index plummeted 2.5%, led by Super Micro Computer (SMCI), which plunged 19.1% after announcing a delay in its Annual Report filing for the fiscal year ended June 30.Gold stocks also underperformed, dragging the NYSE Arca Gold Bugs Index down by 2.2%, driven by a drop in gold prices. Semiconductor stocks faltered as well, with the Philadelphia Semiconductor Index slipping 1.8%. Other sectors, including steel, oil service, and airlines, also saw notable declines.### Other MarketsIn overseas trading, Asia-Pacific markets had a mixed day. Japan’s Nikkei 225 Index rose 0.2%, while China’s Shanghai Composite Index declined 0.4%, and Hong Kong’s Hang Seng Index fell 1.0%.European markets mostly climbed, with Germany’s DAX Index rising 0.5% and France’s CAC 40 Index nudging up 0.2%. The U.K.’s FTSE 100 Index, however, closed just below the flat line.The bond market showed little direction, culminating in a flat session. Yields on the benchmark ten-year note, which move inversely to prices, inched up by less than a basis point to 3.841%.### Looking AheadThursday’s trading is expected to be influenced by reactions to Nvidia’s quarterly results. Additionally, a report on weekly jobless claims may attract investor attention.The material has been provided by InstaForex Company – www.instaforex.com
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