Nvidia Earnings Set to Test Market Strength Amid S&P 500 Index Pressure

Nvidia's upcoming Q4 earnings results are set to test important levels in the stock market, said Jay Woods, chief market strategist at Freedom Capital Markets. According to a CNBC report, Woods is keeping an eye on Nvidia stock to note whether it will move steadily higher after its results.

The NYSE insider reportedly emphasized that considering the earnings' impact on the S&P 500 would be even more vital due to Nvidia's 7% stake in the broader market. The S&P 500 has been testing the 7,000 levels recently, and this is putting a focus on the index’s 100-day moving average at 6,822.

Nvidia's Q4 results will also be closely watched as it reports its earnings per share (EPS) of $1.53 for the quarter, up from $0.89 posted in the same period last year. Wall Street analysts expect Nvidia to post a 68% increase in revenues, of $66.12 billion.

Apart from Nvidia, results from Salesforce and Snowflake, also due on Wednesday, are likely to impact markets. If Nvidia's stock breaks below its 200-day moving average at the $173 area, it could be a tell for this entire market.