The front of the New York Stock Exchange glows with lights on the evening of Tuesday, November 19, 2024. (AP Photo/Peter Morgan)
Wall Street remained relatively calm on Wednesday as investors anticipated Nvidia’s earnings report, considered one of the most pivotal updates of the year. In early trading, the S&P 500 held steady, the Dow Jones Industrial Average inched up by 74 points (0.2%), and the Nasdaq slipped by 0.1%.
Among individual stocks, Williams-Sonoma saw a significant surge after surpassing profit and revenue expectations. Meanwhile, Target suffered a sharp decline following disappointing quarterly results and a weaker-than-expected forecast for the holiday season. In the bond market, Treasury yields climbed modestly.
Global Markets, Mixed Amid Geopolitical Concerns
HONG KONG (AP) – Global stock performance painted a mixed picture as the Russia-Ukraine conflict continued to create uncertainty. On Tuesday, Ukraine utilized U.S.-provided long-range missiles against Russia, marking a significant escalation in the nearly three-year-long conflict. In response, Russian President Vladimir Putin lowered thresholds for the use of nuclear weapons, adding to market unease.
In Europe, the FTSE 100 rose 0.1%, buoyed by news of the U.K.'s inflation rate increasing to 2.3% in October. Germany's DAX and France’s CAC 40 showed gains of 0.6% and 0.5%, respectively. Meanwhile, futures for U.S. markets, including the S&P 500 and Dow Jones, climbed 0.3%.
In Asia, Japan’s Nikkei 225 fell 0.2% after a report revealed the country recorded its fourth consecutive trade deficit in October. Despite a 3.1% rise in exports, high energy prices and a weaker yen drove up import costs. Conversely, shares of Seven & I Holdings, the parent company of 7-Eleven, surged by 8.4% after reports of a major privatization move.
China’s central bank maintained its benchmark lending rates, while the Shanghai Composite gained 0.7%, and Hong Kong’s Hang Seng rose 0.2%. Other regional indexes showed mixed results, with South Korea’s Kospi up 0.4% and Australia’s S&P/ASX 200 down 0.6%.
Nvidia Boosts Optimism as AI Craze Propels Gains
Tuesday’s trading saw Nvidia’s stock climb 4.9%, accounting for a significant portion of the S&P 500’s 0.4% rise. With the company’s earnings report looming, Nvidia’s shares have soared nearly 197% this year, fuelled by enthusiasm around artificial intelligence.
Other major players like Walmart reported strong earnings, with a 3% stock rise thanks to robust sales and expanded reach into upper-income households. Lowe’s also exceeded profit expectations, yet its stock dipped by 4.6%, reflecting broader concerns in the housing sector.
Investors also reacted to broader economic data, including weaker-than-expected construction activity. Home Depot shares dropped slightly in response.
Safe-Haven Assets in Focus
The escalating Russia-Ukraine conflict pushed investors toward safe-haven assets like U.S. Treasury bonds, gold, and the U.S. dollar. Treasury yields dipped slightly to 4.39%, while gold regained 0.6% after earlier losses. Crude oil prices saw modest gains, with U.S. benchmark oil at $69.54 per barrel and Brent Crude at $73.56.
