Stock futures are little changed as Wall Street looks toward Nvidia earnings: Live updates

Published On Aug 27, 2024, 6:03 PM

On August 28, 2024, the stock market saw all three major indexes close lower, primarily due to investor caution ahead of Nvidia's anticipated earnings results. The Nasdaq dropped by 1.12%, the S&P 500 fell by 0.6%, and the Dow Jones lost 0.39%. Analysts noted light trading volumes in the days leading up to Labor Day, which could result in increased volatility following key earnings reports. Piper Sandler suggested that this light trading could create opportunities for growth in small to mid-cap (SMID) stocks, particularly in sectors like Industrials and Technology. Meanwhile, UBS indicated that Apple's sales could slow as consumers pause purchases ahead of the upcoming iPhone launch, and Citi remains optimistic about Micron Technology within the semiconductor industry. Overall, Super Micro Computer experienced a significant drop after delaying its annual financial filing, while Li Auto shares fell sharply due to reduced net income. Bitcoin is on track for its worst month since April, reflecting general investor hesitation across various sectors.

Stock Forecasts

Given Nvidia's crucial role in the market, its earnings report is expected to significantly impact its stock price and overall market sentiment. The options market indicates a potential movement of +/- 10% following the earnings, which aligns with the sentiment of heightened volatility around its results. Analysts are generally hopeful about the long-term prospects for Nvidia, particularly with AI advancements continuing to drive demand.

Citi has identified Micron Technology as a strong buy within the semiconductor sector, expecting a DRAM upturn to support its growth. This bullish outlook contrasts with the anticipated near-term volatility from other tech stocks but suggests a relatively safer investment in Micron given its recent guidance and market positioning.

Li Auto is facing a significant downturn due to disappointing earnings, leading to a drastic drop in share price. With this trajectory and the broader concerns in the electric vehicle market, investors should approach this stock cautiously, anticipating further declines in the near term.

Super Micro Computer is experiencing heavy volatility after a significant drop in its share price due to delayed financial filings and allegations of accounting manipulation. Given the uncertainty surrounding its future and potential market sentiment, this stock might continue to face downward pressure.

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