Stocks hit pause as Mideast tensions dampen bullish mood

Published On Aug 26, 2024, 8:35 AM

The Nasdaq 100 fell by 1% influenced by a dip in major tech stocks ahead of Nvidia's earnings report. Despite the broader market performing well, weakness from tech giants impacted indices, with speculation on potential rate cuts from the Federal Reserve boosting small-cap stocks. Upcoming earnings from Nvidia, expected to show strong results, could significantly influence market sentiment in the tech sector. Analysts note that if Nvidia does not meet expectations, it could present a downside risk for tech stocks and broader indexes. Market activity is positioned as a 'pause' before the earnings announcements, particularly as September is typically a volatile month for markets.

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Stock Forecasts

NVDAView NVDA chart on TradingView

Negative

Considering Nvidia's forthcoming earnings report is attracting a lot of attention and high expectations, there is a potential for volatility based on the earnings outcome. Current sentiment appears cautious, and disappointing results could lead to a broader sell-off in tech stocks.

SPYView SPY chart on TradingView

Positive

The broader market outlook remains mixed; however, the anticipation of rate cuts and positive flows from buybacks and systematic funds may provide support for the S&P 500 despite the current dip in tech stocks. If the liquidity environment remains strong, small caps might see a short-term boost while large caps may stabilize.

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