Nvidia Earnings, Hotter US Inflation, Intuit Outlook Miss and Meta Lawsuit Progress Lead the Day
Key Takeaways
- •Nvidia reports quarterly earnings after the closing bell, and options markets are pricing in a share-price move of about 5%, reflecting the outsized influence of the trillion-dollar AI chip maker on the broader technology sector.
- •US inflation rose to an annual rate of 3.7% in July, exceeding forecasts and remaining well above the Federal Reserve's 2% target, which limits the central bank's flexibility on interest rates.
- •Intuit shares fell after the company forecast fiscal 2027 revenue of $23.28 billion to $23.51 billion, short of Wall Street estimates, with growth expected to slow to around 9% to 10% on weakening Mailchimp momentum.
- •Meta stock rose after the company made progress toward resolving child-safety lawsuits filed in 2023 by dozens of US state attorneys general over the impact of its platforms on younger users.
- •Brent crude dropped below $90 per barrel as investors grew more optimistic that Iran-Oman negotiations could ease tensions around the Strait of Hormuz, a chokepoint that carries roughly a fifth of globally traded oil.
At a Glance
- Nvidia reports earnings after the closing bell, with Wall Street expecting continued strong AI-driven growth
- US inflation rose to 3.7% in July, complicating the Federal Reserve's next move
- Intuit dropped after its fiscal 2027 revenue forecast missed analyst estimates
- Meta rose after making progress toward settling child safety lawsuits brought by US states
- Oil prices fell below $90 as hopes grew for easing tensions around the Strait of Hormuz
Nvidia Earnings Put AI Stocks in the Spotlight
Nvidia commands Wall Street's attention today as the AI chip company prepares to report earnings after the closing bell. Analysts expect another strong quarter, with investors watching data-center revenue, demand for Nvidia's latest AI systems, and gross margins closely.
Options markets are pricing in a move of around 5% following the report, a swing that would represent a large shift in market value. That is partly a function of Nvidia's scale: the company ranks among the most valuable publicly traded companies in the world, with a market value measured in the trillions of dollars. The results carry weight beyond Nvidia alone. Semiconductor, server, and data-center stocks have been moving in line with expectations around Nvidia's growth, and demand for its chips is tied directly to the AI infrastructure buildouts that major cloud providers and tech companies — Meta among them — have been funding, making tonight's report a potential catalyst across the technology sector.
Hotter Inflation Data Puts Pressure on the Fed
US inflation came in above expectations, with the annual rate rising to 3.7% in July. That figure keeps inflation well above the Federal Reserve's long-standing 2% target and raises questions about what the central bank does next. Markets had been hoping cooler conditions would keep the Fed on hold, but persistent inflation limits that option.
Growth stocks, including many in tech, are sensitive to interest-rate changes because higher rates reduce the value placed on future earnings. Investors will now be watching for any signals from Fed officials about how they view the renewed price pressure.
Intuit Falls After Weak 2027 Outlook
Intuit fell after the financial software company issued a fiscal 2027 revenue forecast below Wall Street estimates. Intuit's fiscal year runs through July, so the guidance covers the twelve months stretching into mid-2027. The company guided for revenue of $23.28 billion to $23.51 billion, short of the consensus view, with growth expected to slow to around 9% to 10%.
Concerns were raised around slowing momentum at Mailchimp, part of a product portfolio that also includes QuickBooks, TurboTax, and Credit Karma. Intuit is also cutting some TurboTax prices to attract more users. The market reaction reflects how little room investors are currently giving software companies that miss growth targets.
Meta Rises as Legal Pressure Eases
Meta moved higher after making progress toward resolving lawsuits filed by US states over the alleged impact of its social media platforms on children. The suits were brought in 2023 by dozens of state attorneys general, and the development eased one area of legal uncertainty around the company, which has been under scrutiny over the effects of Facebook and Instagram on younger users.
The stock has also been supported by confidence in Meta's AI plans and the strength of its advertising business, even as the company continues heavy spending on data centers and AI infrastructure.
Oil Drops on Hormuz Hopes
Oil prices fell, with Brent crude dropping below $90 per barrel, after investors grew more optimistic about negotiations between Iran and Oman that could ease tensions around the Strait of Hormuz. The narrow waterway between the two countries is one of the world's most critical oil chokepoints, with roughly a fifth of globally traded oil passing through it, which is why diplomatic progress there moves prices. Lower oil prices tend to support equities by reducing costs and easing inflation, a dynamic that matters on a day when inflation data already came in above expectations.
With Nvidia's report due after the bell, the results could set the tone for technology stocks heading into the final days of August.
Related CoinCentral Coverage
- Nvidia (NVDA) Stock: What Wall Street Expects From Earnings Today
- July PCE Inflation Data Surprises Markets: Fed Rate Hike Back on the Table
- Intuit (INTU) Stock: JPMorgan and BofA Downgrade After Earnings Guidance Cut
- Meta Stock Settles Child Safety Case for Up to $1.8 Billion Over 10 Years
- Oil Tumbles Again as Iran and Oman Strike Hormuz Deal Talks
Source: CoinCentral
