HST - Wall Street Waits With Bated Breath For Nvidia Earnings After Tech Selloff Fed Minutes Eyed: Analyst Flags This As Biggest Risk For Market | Benzinga

Wall Street remains subdued following Tuesday’s sell-off, primarily driven by small-cap and tech stocks. All eyes are now on Nvidia Corp.‘s (NASDAQ:NVDA) fourth-quarter earnings report, scheduled for after the closing bell.

Given the crucial nature of this event, caution is likely to be the predominant sentiment with investors anxiously awaiting Nvidia’s performance. This anticipation is further amplified by the uncertainty surrounding its ability to meet the lofty expectations placed upon it.

Adding to the market’s concerns are upcoming speeches by Federal Reserve officials and, more importantly, the Fed minutes. Both pronouncements hold the potential to shed light on the future trajectory of interest rates, another significant factor influencing investor sentiment.

Cues From Tuesday’s Trading:

Three key developments weighed down the markets on Tuesday:

• Mixed retail earnings: Performance reports from retailers painted a mixed picture, leaving investors unsure about the health of the consumer sector.
• Nvidia anxiety: Apprehension mounted regarding Nvidia’s ability to live up to the high expectations set for its upcoming earnings report.
• Leading economic index decline: The Conference Board’s leading economic index experienced a larger-than-anticipated drop, raising concerns about future economic growth.

These factors contributed to a negative market atmosphere, pushing major averages down:

• Tech-heavy Nasdaq and S&P 500: Both opened lower and remained below the flatline throughout the session. The S&P 500 even dipped below the psychological barrier of 5,000.
• Dow: The Dow experienced some morning volatility but ultimately closed lower.
• Small-caps: The Russell 2000 underperformed, dropping 1.41%.
• Sectors: Only consumer staples, led by Walmart’s positive results, managed to escape the overall decline. Conversely, IT and consumer discretionary stocks took the biggest hits.

US Index Performance On Tuesday