Wall Street Falls Up to 1.2% as Markets Brace for Key U.S. Jobs Data
Beyond Nvidia, this week will also bring earnings from major retailers, including Target (-1.5%) on Wednesday and Walmart (+0.4%) on Thursday.
Quick overview
- Nvidia is set to release its quarterly earnings soon, with high expectations from investors amid a $5 trillion valuation.
- Wall Street's major indexes closed lower as investors await the restart of U.S. economic data and Nvidia's results.
- The end of the government shutdown will bring key economic reports, including the September jobs report, which may influence the Federal Reserve's rate decision.
- In addition to Nvidia, major retailers like Target and Walmart will report earnings this week, providing insights into U.S. consumer spending.
Nvidia will release its quarterly results in the coming days. At the same time, the U.S. will begin publishing the economic data that had been delayed by the government shutdown.
After a mixed close last week, Wall Street’s three major indexes ended Monday in the red as investors exercised caution while awaiting the restart of official U.S. economic reporting and Nvidia’s earnings, the market’s key artificial-intelligence bellwether.
The Dow Jones Industrial Average fell 1.2% to 46,590.49, the S&P 500 dropped 0.9% to 6,679.98, and the Nasdaq Composite declined 0.8% to 22,708.08.
Key U.S. Employment Data Ahead
The end of the prolonged government shutdown means the flow of economic data will resume this week, including new figures on employment and inflation in the world’s largest economy.
One of the most important releases will be the September U.S. jobs report, scheduled for Thursday, though comments from the White House suggest the October data may be incomplete.
These figures are expected to heavily influence the Federal Reserve’s December rate decision.
The Fed cut interest rates at its previous two meetings, but concerns that policymakers have been operating “in the dark” without updated data have fueled bets that they may hold borrowing costs steady next month.
Markets now assign a little over a 40% probability of a 25-basis-point rate cut in December, down from more than 60% earlier this month.
All Eyes on Nvidia
Nvidia’s earnings release on Wednesday—its stock fell 1.8% on Monday—will be a major focus for investors and a key moment for the broader artificial-intelligence rally.
Analysts expect another strong quarter, and expectations are high given the company’s massive $5 trillion valuation.
Nvidia was the main catalyst behind a sharp selloff in tech stocks in late October and early November, as investors questioned the rapid AI-driven surge in valuations—a concern that still lingers.
Caution around Nvidia intensified after documents released over the weekend revealed that billionaire investor Peter Thiel exited his nearly $100 million position in the chipmaker.
Beyond Nvidia, this week will also bring earnings from major retailers, including Target (-1.5%) on Wednesday and Walmart (+0.4%) on Thursday.
Along with results from Home Depot (-1.1%), Lowe’s (-1.2%), and TJX Companies (-0.6%), these updates will shed more light on the state of U.S. consumer spending.
In other market moves, Alphabet shares jumped 3.1% after Berkshire Hathaway disclosed a new stake in the tech giant—a move that comes as Warren Buffett approaches the close of his six-decade tenure leading the conglomerate.
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