PARIS (Reuters) – The New York Stock Exchange opened on Wednesday with slight variations, with investors being cautious while awaiting financial publications from Nvidia, the world’s largest market capitalization, while those from Target disappointed and pulled the sector down. distribution downwards.
In early trading, the Dow Jones index gained 62.62 points, or 0.14%, to 43,331.56 points. The broader Standard & Poor’s 500 fell 2.18 points, or 0.04%, to 5,914.80 points.
The Nasdaq Composite lost 22.16 points, or 0.12%, to 18,965.30 points.
Nvidia, considered the barometer of the craze for artificial intelligence (AI), a promising theme on the markets, must publish its quarterly results after the close of Wall Street.
The stock fell 0.50% on Wednesday after climbing 5% the day before as the semiconductor designer exceeded Wall Street’s expectations in terms of turnover over the last eight quarters.
Options markets show that Nvidia stock could move nearly $300 billion up or down after its earnings release, a swing of 8.5% in either direction.
“Strong demand for AI, particularly for Nvidia’s Blackwell chips, and strong results from TSM, which makes its chips, suggest that (Nvidia’s) results will likely meet and even exceed expectations “, said Ipek Ozkardeskaya, analyst at Swissquote Bank.
“But it’s hard to say that good results will lead to a good market reaction. Blackwell’s delays are the most obvious thing that could cause things to go wrong,” he added.
According to BofA Global Research, Nvidia, whose stock market value has almost tripled this year, contributed about 20% to the performance of the S&P 500 index over the past year. Analysts say the market’s reaction to Nvidia’s results should be crucial in determining Wall Street’s trajectory for the end of the year.
In today’s results, Target fell 18% after announcing that it expected like-for-like sales and profits below expectations for the quarter including the end-of-year holidays. The retail sector on the S&P 500 fell 0.68%, while Dollar Tree, Dollar General and Walmart dropped 2.13%, 1.71% and 0.55% respectively.
Delta Airlines fell 0.90%, with the airline forecasting a single-digit increase in revenue in 2025.
Comcast advances 0.50% after sources said the group will indeed spin off its NBCUniversal cable television networks.
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(Writing by Claude Chendjou, edited by Kate Entringer)
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