The S&P 500 and Nasdaq broke a three-day streak of declines. Markets await Nvidia report
Photo: X / NYSE
Two of the three major U.S. stock indexes opened with growth on Ma 20. Investors are reacting to the decline in oil prices, as well as anticipating the publication of the next quarterly report of Nvidia, writes CNBC.
Details
Against this background, the broad index of U.S. stocks S&P 500 added 0.26% in the first minutes of trading, technological Nasdaq Composite rose by 0.6%. Industrial index Dow Jones loses symbolic 0.07%. On the previous day - for the third trading day in a row - all three indices ended the session with a fall.
June futures for U.S. crude oil Mark WTI lost 2.5% in price on Ma 20, - trading at $101.5 per barrel. July contracts for the benchmark Mark Brent are falling by almost 3% to $108.27. Such dynamics they demonstrate on the next statements of the American leader Donald Trump that the United States will "very quickly put an end to the war" in the Middle East, writes MarketWatch. "They [Iran] are so eager to make a deal, they're tired," Trump told a group of members of Congress at the annual White House picnic for congressmen on May 20.
Including after these words, the VIX volatility index, also known as the "Wall Street Fear Index," fell 0.78% from the previous close to 17.9 points - any value above 20 indicates increased volatility in the market.
Spot gold is down 0.42% to $4492 per unit. In contrast, spot silver is up 1.43%, trading at $74.8.
What the market is saying
Investors' attention is now focused on chip maker Nvidia, which will present its first-quarter report after the close of the trading session on Ma. 20, CNBC notes. These results will be a crucial indicator of the state of the entire artificial intelligence sector and will show up-to-date data on demand for AI chips. Since the beginning of the year, Nvidia has provided about 20% of the return of the S&P 500 index and almost the same share in the profit growth of the entire broad market index, said Ben Snyder, chief U.S. equity strategist at Goldman Sachs. Nvidia shares were adding 0.7% in trading on Ma. 20. They are up 19% since the beginning of the year.
"Nvidia's reporting will set the tone for a stock market that is in dire need of a new catalyst after an incredible rally off the March lows," said Granite Bay Wealth Management's Chief Investment Officer Paul Stanley. His opinion is cited by Barron's. This driver is especially necessary for stocks now - amid fears of rising government bond yields, a new round of inflation, as well as - because of a possible increase in the interest rate of the Federal Reserve, he added.
Nvidia's report "can stabilize risk appetite in the case of strong performance and optimistic outlook for the future, but a weak report or subdued outlook could accelerate a correction in the stock market," Barron's quotes David Rosenberg of Rosenberg Research. A popular index of chipmakers, PHLX Semiconductor, has sagged 3.5% over the past five days, the publication notes.
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