4:10pm: Nvidia set to shake markets
Stocks rebounded from early losses on Wednesday as investors awaited Nvidia's earnings, viewed as a pivotal test for the artificial intelligence-driven market rally.
The Dow Jones gained 0.3%, the S&P 500 closed flat, and the Nasdaq slipped 0.1%, recovering from deeper declines earlier in the session.
Nvidia, the world's most valuable company at $3.61 trillion, has surged 200% this year amid AI enthusiasm. As the last of the "Magnificent Seven" tech giants to report earnings, its results are expected to influence market sentiment.
Again, expectations are for Nvidia to slightly exceed its own revenue guidance of $32.5 billion, or roughly an 80% year-on-year increase, for the quarter.
Options markets indicate a potential 8% post-earnings swing in its share price, equivalent to $300 billion in market value.
2:45pm: Major movers
Shares of Red Cat surged more than 40% after the drone technology firm was selected by the US Army as the production provider for its Short Range Reconnaissance (SRR) Program of Record.
Homegoods retailer Williams-Sonoma shares added almost 28%, hitting a new all-time high, after boosting its full-year sales outlook and reporting a Q3 earnings beat.
Wix also traded up 14.5% after the website builder topped estimates for Q3.
e.l.f. Beauty Inc (NYSE:ELF), on the other hand, was down 7.5% on the news Muddy Water has taken a short position in the cosmetics company.
Roku Inc (NASDAQ:ROKU) shed almost 8% following reports that digital advertising firm the Trade Desk plans to launch a connected TV offering in the second half of 2025.
1:28pm: Weak guidance sees Target plummet
Target Corp (NYSE:TGT) remains well-positioned in the long term as consumer spending rebounds, analysts at Jefferies have reiterated after the retailer’s shares tanked more than 20% on a disappointing quarterly report with weak holiday period guidance.
“While the Q3 results were underwhelming, we believe that Target is well positioned for market share gains and margin recovery when broader discretionary spending improves,” Jefferies analysts wrote in a note to clients.
“With a growing advertising business, robust loyalty program, valuation attractive relative to peers, and recent initiatives, we reiterate our ‘Buy’ rating.”
They did, however, lower their price target on Target to $165 from $195. Shares of Target traded down 21.5% at about $122 in the early afternoon on Wednesday.
12:03pm: All eyes on Nvidia
Stocks edged into negative territory as investors eagerly awaited the release of Nvidia (NASDAQ:NVDA, ETR:NVD)'s earnings report after the closing bell.
The Nasdaq was down 0.4% at 18,911 points, the S&P 500 shed 0.4% at 5,896 points, while the Dow shed 15 points at 43,253 points.
IG chief market analyst Chris Beauchamp sees Nvidia’s report setting the tone for the rest of the month.
“The largest company in the world reports earnings tonight, and it could well be a volatile session for Nvidia stock,” he said. “The last set of earnings helped to precipitate a substantial selloff in markets; a miss tonight could turn the current period of indecision into a definitive pullback for the AI sector, as well as for the broader market.”
10:50am: Bitcoin on path to $120k
Bitcoin reached a record high of over $94,000 on Wednesday.
deVere Group CEO Nigel Green believes it could climb to $120,000 by March 2025. Green, who previously predicted Bitcoin would hit $100,000 after Donald Trump’s re-election and inauguration, has now raised his expectations amid the cryptocurrency's historic surge.
“The $100,000 milestone, which once seemed bold, now looks conservative," he says. “I believe Bitcoin could reach $120,000 in the first quarter of 2025 as the rally gains further traction.”
Green's $120,000 Bitcoin target reflects growing optimism about its mainstream adoption and valuation. However, he warns that the path to this milestone will be volatile.
“Bitcoin’s rise is not without volatility. However, for long-term investors, the trajectory is unmistakable. The combination of limited supply, increasing demand, and supportive regulatory developments forms a compelling case for sustained growth.”
9.48am: Stocks drop as Nvidia earnings loom
Wall Street got off to a cautious start on Wednesday as attention turned firmly to Nvidia Corp’s third-quarter trading update later in the day.
The Nasdaq dipped 0.3% after the opening bell, while the S&P 500 fell 0.2% and the Dow Jones sat just below the mark.
Nvidia dropped by 1.3% in the meantime as a rally over the first half of the week appeared to stall as the chip-making giant’s post-market earnings drew ever closer.
“It is rare that a single stock dominates the global financial space,” XTB analyst Kathleen Brooks commented.
“However, tonight’s earnings report from Nvidia seems like a pivotal moment for global financial markets.
“A stunning earnings report could reenergize the AI trade and the entire US stock market rally, however, a disappointing report could trigger risk-off sentiment.”
Aside from Nvidia, Wednesday also brought earnings from Target Corp (NYSE:TGT), which fell by a fifth after unveiling lower third-quarter profit and warning of a soft holiday period, while Palo Alto Networks Inc (NYSE:PANW, ETR:5AP) and Snowflake Inc were also in line to report.
7.56am: Wall Street seen higher
US tech stocks are expected to rise when trading commences this morning.
At the time of writing, pre-market Nasdaq 100 trades have the index opening 0.2% higher at 5,928.
All eyes will be on how Nvidia Corp performs ahead of its third-quarter earnings call after the closing bell today.
The chipmaking giant’s share price is approaching all-time highs; a sufficiently large revenue beat could be the catalyst it needs to tip over.
Futures contracts on the Dow Jones Industrial Average have the index opening 0.3% higher at 43,402, while the broader S&P 500 is tipped to open 0.2% higher at 5,928.
Palo Alto Networks Inc (NYSE:PANW, ETR:5AP) and Snowflake Inc also have trading updates on the calendar.