Stock market today: Dow, S&P 500, Nasdaq slide as Nvidia earnings loom large

Published On Nov 20, 2024, 3:00 PM

U.S. stocks fell on Wednesday ahead of Nvidia's significant earnings report, critical for the AI market's direction. The Dow was down about 0.1%, S&P 500 nearly 0.5%, and Nasdaq 0.7%. Nvidia's earnings are anticipated to be a touchstone event, with analysts expecting strong numbers amidst concerns about AI stock valuation bubbles. Nvidia’s stock is down almost 2% leading up to the report, showing volatility as traders anticipate a possible move of 8% in either direction post-earnings. Target reported disappointing earnings, slashing its holiday outlook and experiencing a drop of over 21% in its share price. Qualcomm's shares fell by 6.6% after an investor day that raised doubts about its growth strategy, especially in light of decreased business with Apple. Meanwhile, Walmart and Lowe's cautioned about potential cost increases due to proposed tariffs from the incoming administration.

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Stock Forecasts

NVDAView NVDA chart on TradingView

Positive

Nvidia is expected to report strong earnings, yet shares are already volatile as traders hedge against their own expectations. If the results meet or exceed expectations, this could spark a surge due to sustained investor demand for AI technology. However, if the earnings disappoint or guidance is lowered, it could confirm signs of a bubble and lead to significant sell-off pressure in the AI sector.

TGTView TGT chart on TradingView

Negative

Target's disappointing earnings and reduced guidance are likely to pressure its share price further, as the company may need to compete more aggressively with competitors like Walmart. The downgrade from analysts suggests a challenging outlook for Target that could lead to prolonged declines in its stock value as investor confidence erodes.

QCOMView QCOM chart on TradingView

Negative

Qualcomm's recent struggles raise concerns about its future revenue streams, particularly as Apple seeks independence from Qualcomm's chip supply. This lack of growth could lead to decreased investor sentiment and further declines in stock prices as uncertainty around its new revenue targeting strategy persists.

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