Nvidia's Earnings and Fed Minutes Awaited Amid Wall Street's Record Highs

Key Announcements from Nvidia and the Federal Reserve Expected to Influence Markets

May 22, 2024 - 06:39
May 22, 2024 - 06:39
Nvidia's Earnings and Fed Minutes Awaited Amid Wall Street's Record Highs
Nvidia's Earnings and Fed Minutes Awaited Amid Wall Street's Record Highs

U.S. stock futures were relatively flat on Wednesday as investors awaited two major developments: Nvidia's quarterly earnings report and the release of the Federal Reserve's policy meeting minutes.

Nvidia, a leading company in the AI chip sector, is set to release its first-quarter earnings after the market closes. The company's performance is under close scrutiny as its stock has surged by over 92% this year, following a substantial increase last year.

"Investors are eager to see if Nvidia's success from 2023 has continued into the new year," said Sam North, an analyst at investment platform eToro. "The expectations are very high, and it will be interesting to see if the company can exceed them again."

Ahead of the earnings report, Nvidia's shares were down 0.5% in premarket trading, despite gaining more than 3% over the past two days.

Additionally, investors are looking forward to the Federal Reserve's latest policy meeting minutes, which are expected to be released at 2 p.m. ET. These minutes could provide more clarity on the timing of a potential interest rate cut. Several Federal Reserve officials have emphasized the need for more signs of inflation slowing down before reducing rates.

Traders currently estimate a 69% chance that the Fed will lower rates by at least 25 basis points in September, according to CME's FedWatch Tool.

As of 5:25 a.m. ET, Dow futures were down 45 points (0.11%), S&P 500 futures were down 7 points (0.13%), and Nasdaq 100 futures were down 15 points (0.08%).

This slight decline in futures follows two days of gains that pushed the tech-heavy Nasdaq and the S&P 500 to record closing highs on Tuesday.

Other earnings reports expected today include those from retailers Target and TJX, and chipmaker Analog Devices, all set to report before the market opens.

In premarket movements, Urban Outfitters' stock rose 6.7% after the company reported better-than-expected first-quarter results, driven by strong demand. On the other hand, Lululemon Athletica's shares fell 4.2% following the announcement that Chief Product Officer Sun Choe is leaving the company.

Also Read: Wall Street's Dance: Dow Nears 40,000, Reddit Rockets with OpenAI, GameStop's Dive – Weekly Market Insights

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