NewsStocksUS stock markets close near flat ahead of Nvidia earnings

US stock markets close near flat ahead of Nvidia earnings

Author: ForexLive·

Key Takeaways

  • •US stock indexes closed near flat on Wednesday as investors awaited Nvidia's quarterly earnings report, scheduled for release at 4:20 p.m. ET shortly after the closing bell.
  • •The S&P 500 rose 0.1% while the Nasdaq Composite and the Russell 2000 each declined 0.1%.
  • •Nvidia's results are widely watched as a bellwether for AI-related demand and the pace of AI infrastructure spending, and as a Dow component and one of the largest S&P 500 companies by market value, its report can carry weight in the indexes.
  • •The post-release conference call is expected to focus on Nvidia's guidance, the data-center segment that generates most of its revenue, and management's remarks on demand from cloud providers and other large customers.
  • •Shares of Salesforce (CRM) and CrowdStrike (CRWD) showed big gains in early post-market trading.
US stock markets close near flat ahead of Nvidia earnings

US stock indexes closed near flat on Wednesday, with little excitement on the tape as investors awaited Nvidia's quarterly earnings report, set for release at 4:20 p.m. ET, shortly after the closing bell. Quiet sessions often precede heavily watched corporate events, with much of the market's attention concentrated on a single release.

Closing changes for the day:

  • S&P 500: +0.1%
  • Nasdaq Composite: -0.1%
  • Russell 2000: -0.1%

The S&P 500 and the tech-heavy Nasdaq Composite gauge large-cap US equities, while the Russell 2000 tracks small-cap stocks.

Attention now turns to Nvidia (NVDA), the semiconductor company whose graphics processors underpin much of today's artificial intelligence computing. Nvidia's results are widely watched as a bellwether for AI-related demand, and for the pace of AI infrastructure spending more broadly, a subject of close investor scrutiny as the largest technology companies commit heavy capital to data centers. The company is also a component of the Dow Jones Industrial Average, and it ranks among the largest companies in the S&P 500 by market value, so the reaction to its report can carry weight in the indexes themselves. The release will be followed by a conference call, where the focus typically falls on the company's guidance, on the data-center segment that generates the bulk of its revenue, and on management's remarks about demand from the cloud providers and other large customers building out AI computing capacity.

In early post-market trading, big gains were already visible in shares of Salesforce (CRM), the cloud-based customer relationship management software maker, and CrowdStrike (CRWD), the cybersecurity provider.

Source: ForexLive