Nvidia Earnings Report Looms Large Ahead of Mixed US Economic News
The major US stock indices closed little changed on Wednesday ahead of Nvidia's highly anticipated earnings report. The S&P 500 Index ($SPX) (SPY) fell by -0.02%, while the Dow Jones Industrial Average ($DOWI) (DIA) dropped by -0.21% and the Nasdaq 100 Index ($IUXX) (QQQ) rose by +0.05%. E-mini S&P futures (ESU26) rose by +0.02%, and September E-mini Nasdaq futures (NQU26) increased by +0.08%.
The broader market lacked direction on Wednesday, with mixed results from US economic news. July capital goods new orders nondefense ex-aircraft and parts, a proxy for capital spending, rose less than expected at +0.2% m/m, while July personal spending and income exceeded expectations with rises of +0.2% m/m and +0.4% m/m respectively.
Nvidia's earnings report will be a key factor in determining the direction of AI stocks, as it is considered the best barometer of AI spending. Analysts project that Nvidia's Q2 revenue will nearly double from a year ago, with markets focusing on what CEO Huang has to say about capital spending by its biggest customers and future demand.
Elsewhere, crude oil prices fell to a 1.5-week low after reports emerged of an initiative to establish a 'temporary joint maritime corridor' aimed at resuming transit through the Strait of Hormuz, reducing tensions in the Middle East and leading to a partial resumption of crude supplies.