Daily Stock Market: Dow and S&P 500 Flat As Nasdaq Ticks Upward
Stock indices are moving very little as investors wait for the earnings report from Nvidia this week.
Quick overview
- The stock market showed minimal movement on Monday, with the Nasdaq Composite gaining only 0.1%.
- Investor focus is on tech stocks, particularly Nvidia, as concerns grow over the profitability of AI investments.
- Nvidia is set to release its quarterly earnings this Wednesday, which could significantly impact market sentiment.
- Despite recent fears about the AI market, Nvidia is expected to report strong earnings, bolstered by a substantial order backlog.
On Monday, there has been very little movement from the stock market, with the Nasdaq Composite only gaining 0.1% in early morning trading.
The Dow Jones and the S&P 500 are essentially flat for Monday morning as the most recent stock market rally stalled out. Tech stocks performed slightly better, raising the Nasdaq index incrementally.
Investor scrutiny will be on tech socks again this week after a failed tech rally and increased worry that AI stocks may start to fail. The heavy investments that have been paid into AI by Microsoft, Tesla, Nvidia, and other leading companies have hurt their profit margins, and investors are pulling back as they anticipate heavy losses for the coming quarters.
Nvidia’s Earnings to Release This Week
The big news this week is the upcoming Nvidia (NVDA) earnings call for Wednesday. The largest company in the world by market capitalization and the leader in artificial intelligence will have a massive impact on the market at a key time by releasing quarterly earnings.
Over the last couple weeks, fears about the future of the AI market have been plaguing the stock market, and recent earnings reports have received extra scrutiny as a result. When Advanced Machine Devices (AMD) released a strong earnings statement a couple weeks ago, their stock rose and then dipped immediately after. The question was raised as to whether their performance was strong enough and whether their outlook was bright enough considering AI was supposed to be a rapidly growing market.
Then there is the case of Bitfarms Ltd. (BITF), which switched from Bitcoin mining to AI-powered digital infrastructure. Their horrible earnings report last week brought further conjecture that the AI market might be headed for a burst bubble.
Nvidia is expecting a great quarterly statement, and they announce that they currently have $500 billion in order. That includes all of 2025, and when analysts did the math, they found that the company is expecting a better quarterly return than previously anticipated.
If the AI market does end up coming down to just a handful of companies, Nvidia is likely to be one of the ones left standing. They already have a large market share, and they are on course to grow their stock value this week after the earnings call.
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