(New York) The New York Stock Exchange ended down on Wednesday, caught up in caution ahead of the highly anticipated release of results from semiconductor giant Nvidia after the close.
The Dow Jones Industrial Average fell 0.39%, the NASDAQ index fell 1.12% and the broader S&P 500 index fell 0.60%.
Wednesday was a waiting session, deprived of macroeconomic indicators and without publications from leading companies.
It was almost entirely devoted to positioning itself before the presentation of Nvidia’s accounts, expected after the bell.
“Nvidia has been moving higher in recent weeks as the market anticipated that it would do better than expected” in its second fiscal quarter, which runs from late April to late July, said Tom Cahill of Ventura Wealth Management.
“But the bar has been set so high that it’s not hard to imagine them saying their growth is going to slow down, even just a little bit,” the analyst continued. “There’s a little bit of apprehension.”
For more than two years, the Santa Clara group has been pulverizing market expectations, quarter after quarter.
It is boosted by demand for its now famous graphics cards, chips with increased computing capacities, essential for the development of so-called generative artificial intelligence (AI).
By all accounts and based on futures contracts, Nvidia’s publication should cause the New York stock market to react sharply, either up or down.
“I don’t think the issue is the previous quarter’s results,” Cahill said. “It’s the forecasts that are the concern.”
Ahead of the deadline, Wall Street has divested some of its positions in the technology sector.
Semiconductors suffered particularly, like Nvidia (-1.59%), AMD (-2.75%), Broadcom (-1.99%) and Intel (-2.29%).
After the recent appreciation of these stocks, “some people thought maybe it was time to sell a little bit” and take some profits, according to Tom Cahill.
On the bond market, the yield on 2-year US government bonds stood at 3.87%, compared to 3.90% the previous day at the close, the lowest since the brutal drop at the beginning of August.
With their eyes fixed on Nvidia, investors have largely lost interest in anything that isn’t technology-related.
Department store chain Kohl’s (+0.26%) capitalized on a profit above expectations and the raising of its annual target.
Tom Kingsbury, the chief executive, nevertheless reported a “difficult environment for consumers”, who are showing “restraint in their purchases”.
Another good surprise in the retail sector was the ready-to-wear chain Abercrombie & Fitch, which exceeded analysts’ forecasts and revised its annual targets upwards.
The title nevertheless ended sharply down (-16.93%), with the market expecting even more from this brand which is rising from its ashes after a long, difficult period.
Unlike Kohl’s, Abercrombie saw its revenue increase, as did athletic equipment chain Foot Locker, which grew for the first time in a year and a half.
Analysts, however, considered the sales growth forecast to be modest, with the stock plunging 10.15%.
Cosmetics brand Bath & Body Works has revised upwards its net profit targets for the full financial year.
But investors paid more attention to its disappointing sales figures for the previous quarter, with the stock falling 7.00%.
Server and remote computing infrastructure specialist Super Micro Computer continued its slide (-19.02%), after being accused on Tuesday of accounting manipulation by the hedge fund Hindenburg Research.
TSX down
Canada’s main stock index fell on Wednesday, weighed down by losses in the base metals and technology sectors.
The S&P/TSX composite index closed down 132.98 points at 23,126.98.
The Canadian dollar was trading at 74.23 US cents compared to 74.29 US cents on Tuesday.
On the New York Commodity Exchange, crude oil fell by $1.01 to $74.52 per barrel, while natural gas gained one cent to $2.10 per million BTU.
The gold contract fell $15.10 to $2,537.80 an ounce and the copper contract slipped eight cents to $4.22 a pound.
The Canadian Press