Wall Street Awaits Nvidia Earnings Amid Market Fluctuations

Wall Street's main indexes stayed relatively steady ahead of Nvidia's earnings report, crucial in assessing the sustainability of the tech-driven rally. Concerns loom that any disappointing figures from Nvidia could adversely affect semiconductor stocks and technology shares. Investor optimism hinges on potential U.S. Federal Reserve interest rate cuts, with broader market movements anticipated post-report.

Wall Street's primary indexes remained relatively unchanged on Wednesday as markets eagerly awaited Nvidia's earnings report. The focus is primarily on whether the recent rally, driven by AI chip firms and tech-related shares, can be sustained.

This week, indexes have experienced small fluctuations, with the Dow Jones nearing a record high and the S&P 500 within 1% of its all-time peak. Nvidia's shares dipped slightly ahead of the earnings report, and options traders predict a 9.8% movement in the stock post-earnings, according to ORATS data.

A disappointing performance from Nvidia could negatively impact megacaps and semiconductor stocks, which have propelled the 2024 rally on hopes of AI-enhanced corporate profits. "Investors are nervous about Nvidia's earnings given lofty expectations," said Sam Stovall of CFRA Research. The outcome will influence Nvidia's shares, the tech sector, and broader market sentiment.

(With inputs from agencies.)