Tech Stocks Decline as Investors Monitor Nvidia Earnings in Nasdaq 100, Dow Jones, S&P 500 News

Losses in chipmakers and cautious signals from Federal Reserve officials have led to a 1.2% drop in the Philadelphia Semiconductor Index and a slight pullback in the Nasdaq. Micron, a memory chip manufacturer, saw a 2.2% decline after raising its full-year capital expenditure forecast, while Palo Alto Networks dropped 5.1% on disappointing billings forecast. Lowe’s fell 1.6% despite strong quarterly sales, while Macy’s gained 2.1% after raising its profit forecast.

Investor sentiment was also influenced by Federal Reserve officials emphasizing a cautious approach to easing monetary policy. Atlanta Fed Chair Raphael Bostic and Fed Governor Christopher Waller highlighted the need for more favorable inflation data before considering rate cuts. Traders are currently pricing in about 43 basis points of rate reductions this year, with expectations of a quarter-point cut by November.

Nvidia’s stock, which has surged 91% in 2024, edged lower by 0.3% ahead of its earnings report. Analysts anticipate strong results, with the stock’s performance closely tied to market enthusiasm for AI. UBS strategists noted that Nvidia’s earnings could be the next significant market catalyst.

The market is closely watching Nvidia’s earnings as a potential driver of future movements. While the current sentiment is cautious, especially with the Federal Reserve’s stance on interest rates, a strong performance from Nvidia could bolster investor confidence. Traders should prepare for potential volatility as the market digests these key developments.