Markets Hold Steady as Investors Await Nvidia’s Results: A Pivotal Moment for AI and Beyond

Stocks traded within a narrow range just hours before Nvidia Corp. releases its highly anticipated earnings report. As the last of the “Magnificent Seven” megacap companies to report, Nvidia’s results are set to be a crucial indicator of the current state of the artificial intelligence boom.

Nvidia, a key player in the AI revolution, has seen its market capitalization soar to over $3 trillion, making it one of the most influential stocks in the S&P 500 this year. Analysts expect the company to project revenue growth exceeding 70% for the current quarter, with investors eager to hear CEO Jensen Huang’s outlook for 2025. The options market suggests Nvidia’s results could trigger a swing of nearly 10% in either direction, with the potential to impact broader market indexes.

Ahead of the earnings report, the S&P 500 hovered around 5,625, with Nvidia shares dipping 0.4%. Other market movements included Super Micro Computer Inc. plummeting 18% after announcing a delay in filing its annual financial disclosures, and Warren Buffett’s Berkshire Hathaway Inc. reaching a market value of over $1 trillion for the first time.

In the corporate world, several key highlights emerged:

• Kohl’s Corp. (KSS) raised its full-year profit outlook as it focuses on trimming expenses and reducing inventory levels in response to shifting consumer behavior.
• Abercrombie & Fitch Co. (ANF) exceeded analysts’ sales expectations for the sixth straight quarter, but investors remain cautious despite the ’90s fashion revival.
• Foot Locker Inc. (FT) reported stronger-than-expected sales, reflecting successful turnaround efforts and a renewed partnership with Nike Inc., though investors remain skeptical.
• Nordstrom Inc. (JWN) offered an optimistic outlook for this year’s sales, buoyed by better-than-expected performance at its discount chain, signaling a shift towards off-price shopping among consumers.
• Warren Buffett’s Berkshire Hathaway (BRK-B) sold an additional $982 million of Bank of America Corp. stock, continuing to scale back its investment in the nation’s second-largest bank.

Treasury 10-year yields rose two basis points to 3.84%, reflecting the cautious sentiment in the market as investors brace for Nvidia’s pivotal earnings report.