A strong rise on Wall Street in anticipation of Nvidia shares

Last update 19:50

In positive territory and with big gains, all three Wall Street indices are moving, as investors appear optimistic about the quarterly numbers that the company with the hottest title in the S&P 500 this year, Nvidia, will release after the close of trading.

Especially the industrial index Dow Jones moves 34,345 units With a height of about 160 units or 0,45%expanded Standard & Poor’s 500 It is reinforced by 1% in 4,432 unitsas did the tech-heavy Nasdaq, which made a jump 1,55% It is located in 13,715 units.

As noted above, Nvidia, which is up significantly more than 200% through 2023, is reporting its Q2 numbers as analysts expect it to deliver strong year-over-year growth in both revenue and earnings.

Since the overall rise of the US market this year depends largely on the prospects opened up by the rapid development of artificial intelligence, if Nvidia (the major manufacturer of powerful microchips required by this new industry) confirms the expectations, it is expected to further stimulate the investment mood.

But also the opposite of course. As noted by Ipek Ozkardskaya of Swissquote Bank, “Investors will focus on whether Nvidia’s sales in the second quarter confirm the $11 billion estimate. Anything below this very impressive level could lead to a sharp downward correction in the share price, which rose by 345%. % from its lowest level in October.

In the same climate, estimates by Susannah Streeter of Hargreaves Lansdowne indicate that “the size and outlook of the microchip giant would lead to wild volatility”.

However, in a sign of the prevailing optimism, the tech capital giants are all moving in big profits, with start-up stocks surging. Apple, Alphabet, Microsoft, MeetA to be stronger than him 2% and the Tesla And Amazon above it 1%.

Elsewhere, data released shortly after the session opened showed that US private sector activity fell further in August, falling to levels that suggest the economy is in recession.

The composite PMI for manufacturing and services in August fell to a six-month low of 50.4 from 52 in July, according to preliminary data from the related survey by S&P Global.

The business activity index in services fell to a six-month low, to 51 from 52.3 previously, while the manufacturing PMI fell to 47 in August from 49 (remember that 50 separates areas of growth and contraction).

However, despite the gloomy outlook for the US economy, there is a bright side for investors as the slowdown in activity strengthens the Fed’s stance to put an end to rate hikes.

In other news, companies in the retail and sporting goods sector in particular are under significant pressure amid disappointing results from two major players in the industry, Dick’s Sporting Goods yesterday and Footlocker today.

specially, foot locker Its shares are down 30% after dropping nearly 10% year-on-year during the second quarter by the popular sportswear chain, while Dick’s Sporting Goods Today it is down 1.6% after yesterday’s brutal drop of 24% in the wake of a downgrade in its forward rating.

Widespread fears touch her, too Nikedown for the tenth consecutive session (the longest losing streak in its history) with further losses of more than 3%.

At the same time, of course Cole It rose 4% after the retailer beat analyst estimates for the quarter, with earnings of 55 cents per share versus expectations of 22 cents per share.

Even better was Abercrombie & Fitch, which rose strongly 20% after the ready-to-wear retailer beat estimates in the quarter, with earnings of $1.1 a piece versus expectations of just 17 cents.

On the other side, peloton It fell 20% after the disappointing numbers announced by the fitness equipment chain and the downbeat direction of its sales.

Wall Street emerged from a mixed session yesterday, with the Dow Jones and S&P 500 closing lower, while the Nasdaq was slightly higher. Overall, August was a difficult month for equity markets globally, amid heightened uncertainty, with the S&P 500 currently down -4%.