by Chuck Mikolajczak

NEW YORK (Reuters) – The New York Stock Exchange ended lower on Tuesday, with the Nasdaq recording the biggest decline of the day in the wake of Nvidia, in the red on the eve of the publication of its quarterly results, while Walmart saved the Dow Jones from a more significant decline.

The Dow Jones index fell 0.17%, or 64.19 points, to 38,568.00 points.

The broader S&P-500 lost 30.06 points, or 0.60%, to 4,975.51 points.

The Nasdaq Composite fell 144.87 points (0.92%) to 15,630.78 points.

Investors are wondering whether Nvidia’s quarterly results, expected after the close on Wednesday, will justify the semiconductor maker’s very high valuation and continue to fuel enthusiasm around stocks linked to artificial intelligence (AI).

Nvidia, which has established itself on the podium of the most valuable Wall Street companies by taking full advantage of the craze for chips dedicated to AI, fell 4.35% on Tuesday, its biggest drop since last October .

“No matter what they say, traders are going to lock in their profits, asset managers are going to withdraw some of their positions (…) and this partly happened today, ahead of the data tomorrow “, commented Ken Polcari, director of Kace Capital Advisors, in Florida.

While they were buoyed at the start of the year by optimism about interest rates, the main Wall Street indices stalled last week after data on inflation in the United States less good results than expected dampened hopes of an imminent easing in the monetary policy of the Federal Reserve (Fed).

A first cut in interest rates is now expected in June, according to a narrow majority of economists polled by Reuters, who do not rule out the risk of having to wait even longer. Investors are looking to find clues on monetary policy in the minutes of the Fed’s January meeting, which will be released on Wednesday, while officials from the US central bank will speak later this week.

Walmart set a record after saying it expected annual sales well above Wall Street expectations and raising its annual dividend by 9%.

In the retailer’s wake, the consumer staples sector recorded the only gain of the day among the major sectors of the S&P-500. Information technology suffered the biggest decline.

Alternating modest gains and declines during the session, Home Depot finished slightly in the green (0.06%) after reporting annual forecasts below expectations.

A beneficiary in recent weeks of the craze around AI, chip manufacturer Super Micro Computer fell for a second consecutive session after plunging almost 20% on Friday.

(Written by Jean Terzian)

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