New York, NY – The stock market showed mixed movements overnight, with Dow Jones futures edging up and S&P 500 futures along with Nasdaq futures declining. Nvidia, the chipmaker, experienced a sell-off despite surpassing expectations, providing optimistic guidance, and unveiling a $50 billion buyback plan.
Among other AI-related stocks, Broadcom, Taiwan Semiconductor Manufacturing, Advanced Micro Devices, and Arista Networks also experienced slight retreats. On the other hand, Salesforce, CrowdStrike, and Okta reported positive financial results on Wednesday night, as did storage companies NetApp, Pure Storage, and Nutanix, although the stock performances varied.
The stock market rally wavered on Wednesday ahead of Nvidia’s earnings release but rebounded from intraday lows. While many AI stocks, including Nvidia, saw declines, the losses were mitigated as well.
In terms of futures, Dow Jones rose 0.15%, with Salesforce being a component, while S&P 500 futures and Nasdaq 100 futures dropped. Notably, NVDA stock is a key member of both the S&P 500 and Nasdaq 100 indexes.
Nvidia reported impressive earnings and revenue growth for the fifth consecutive quarter, although the beat was not as significant as in previous quarters. The company issued optimistic guidance for Q3 and announced a substantial buyback program. Amid rumors of delays in Blackwell processors, Nvidia’s CEO reassured investors on the earnings call.
The stock market saw a retreat on Wednesday, with Super Micro and Nvidia leading the tech sector lower as the Nasdaq closed below its 50-day moving average. Other companies, including Foot Locker, Abercrombie & Fitch, and Li Auto, reported disappointing earnings results.
Following the earnings reports, various Exchange-Traded Funds (ETFs) experienced fluctuations, with growth ETFs like the iShares Expanded Tech-Software Sector ETF and the VanEck Vectors Semiconductor ETF seeing declines. Speculative story stock ETFs, such as ARK Innovation ETF and ARK Genomics ETF, also faced setbacks.
Investors are advised to stay vigilant and monitor the market closely, especially in response to Nvidia, Salesforce, and other key players’ performance. Having well-prepared watchlists and exit strategies is crucial for navigating the market effectively.