Traders May Stick To The Sidelines Ahead Of Nvidia Earnings, Key Data
25 Fevereiro 2025 - 10:59AM
IH Market News
The major U.S. index futures are currently pointing to a roughly
flat open on Tuesday, with stocks likely to continue experiencing
choppy trading after seeing considerable volatility in the previous
session.
Uncertainty about the near-term outlook for the markets may keep
some traders on the sidelines following recent weakness, which saw
the Nasdaq and S&P 500 move sharply lower over the three
previous sessions.
Traders may also be reluctant to make significant moves of the
release of earnings news from Nvidia (NASDAQ:NVDA) after the close
of trading on Wednesday.
“Nvidia is due to report its fourth-quarter and full-year
results on Wednesday and investors will be looking forward to the
usual demolition of forecasts and also positive guidance for the
next quarter from chief executive Jensen Huang,” said AJ Bell
investment director Russ Mould.
“Failure to deliver the customary upside surprise might not sit
well,” he added. “Nvidia’s shares are no higher than they were last
summer, despite strong earnings and ongoing investor enthusiasm for
all things related to artificial intelligence, so any unexpected
disappointment could cause some share price turbulence.”
Traders are also looking ahead to the release of some key U.S.
economic data in the coming days, including the Federal Reserve’s
preferred readings on consumer price inflation.
Not long after the start of trading, the Conference Board is due
to release its report on consumer confidence in the month of
February. The consumer confidence index is expected to dip to 103.0
in February after falling to 104.1 in January.
Following the significant pullback seen during last Thursday and
Friday’s session, stocks saw considerable volatility over the
course of the trading day on Monday. The major averages showed wild
swings back and forth across the unchanged line as the day
progressed.
The Nasdaq and the S&P 500 eventually ended the day firmly
in negative territory, but the narrower Dow posted a modest
gain.
While the Dow inched up 33.19 points or 0.1 percent to
43,461.21, the S&P 500 fell 29.88 points or 0.5 percent to
5,983.25 and the Nasdaq tumbled 237.08 points or 1.2 percent to
19,286.92.
The Nasdaq and the S&P 500 ended the day firmly in the red
after President Donald Trump said previously delayed tariffs on
Canada and Mexico are “going forward on time.”
Claiming the U.S. has “been taken advantage of” on “just about
everything,” Trump said, “The tariffs will go forward… and we’re
going to make up a lot of territory.”
The volatility on Wall Street also came as traders looked ahead
to the release of the earnings news from Nvidia. The AI darling and
market leader is scheduled to release its fourth quarter results
after the close of trading on Wednesday.
A lack of major U.S. economic data may also have contributed to
the choppy trading ahead of the release of the Federal Reserve’s
preferred readings on consumer price inflation on Friday.
Semiconductor stocks moved sharply lower over the course of the
session, resulting in a 3.0 percent nosedive by the Philadelphia
Semiconductor Index.
Computer hardware, networking and software stocks also saw
considerable weakness, contributing to the steep drop by the
tech-heavy Nasdaq.
Retail stocks also showed a notable move to the downside, while
significant strength was visible among pharmaceutical stocks.
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