After a Sharp Rise, Market Pauses for Breath
Nvidia to Announce Earnings After Market Close
Minutes from May FOMC Meeting to Be Released in the Afternoon
The three major indices on the New York Stock Exchange opened slightly higher on May 28 (local time). The market entered a 'wait-and-see' mode, anticipating both news of additional trade agreement settlements by the United States and Nvidia's earnings announcement, which is set to be released after the market closes. The minutes of the Federal Reserve's May Federal Open Market Committee (FOMC) meeting will also be published later in the afternoon.
As of 9:30 a.m. on the same day at the New York Stock Exchange, the blue-chip Dow Jones Industrial Average (Dow Jones Index) was up 22.48 points (0.05%) from the previous trading day, standing at 42,366.13. The S&P 500 Index, which focuses on large-cap stocks, rose 8.14 points (0.14%) to 5,929.68, while the tech-heavy Nasdaq Index gained 36.84 points (0.19%) to 19,236.01.
The previous day, the New York stock market rebounded, overcoming last week's weakness caused by concerns over a worsening fiscal deficit. President Donald Trump's decision on May 25 to postpone the effective date of a 50% tariff on the EU from June 1 to July 9 served as a catalyst for the stock market rally. This move reinforced optimism that the tariff war might be moving past its worst phase. Kevin Hassett, Chairman of the White House National Economic Council (NEC), also suggested in a CNBC interview the previous day that "several additional negotiations are expected this week," indicating that further trade agreements may be imminent.
Investor attention is focused on Nvidia's earnings announcement today. According to market research firm LSEG, Nvidia is expected to report revenue of $43.28 billion and adjusted earnings per share (EPS) of $0.73 for the first quarter of fiscal year 2026 (February to April of this year). Nvidia's results are expected to provide insight into the profitability of artificial intelligence (AI) investments and reveal the impact of the ongoing U.S.-China trade war and U.S. export controls targeting China.
Justin Onuekwusi, Chief Investment Officer (CIO) at St. James's Place, said, "Nvidia's earnings will be extremely important," adding, "The fact that macroeconomic investors are treating Nvidia as an event shows just how much the company has grown."
The minutes of the May FOMC meeting, scheduled for release at 2 p.m. today, are also drawing attention. Amid macroeconomic uncertainty caused by President Trump's tariff policies, the Federal Reserve kept its benchmark interest rate steady at 4.25-4.5% for the third consecutive time earlier this month. Investors are expected to look for clues about the Fed's economic outlook and the future path of interest rates.
Several key economic indicators will also be released this week. The Personal Consumption Expenditures (PCE) Price Index for April, the inflation gauge most closely watched by the Fed, will be published on May 30. The preliminary estimate of U.S. gross domestic product (GDP) growth for the first quarter of this year will be announced a day earlier, on May 29. The United States releases its economic growth rate in three stages: advance, preliminary, and final estimates. The preliminary estimate is expected to show a quarter-over-quarter annualized rate of -0.3%, the same as the advance estimate. Weekly initial jobless claims will also be released on the same day.
U.S. Treasury yields are rising. The yield on the benchmark 10-year U.S. Treasury note climbed 3 basis points (1bp = 0.01 percentage point) from the previous day to 4.47%, while the yield on the 2-year U.S. Treasury note, which is sensitive to monetary policy, rose 2 basis points to 3.97% compared to the previous trading day.
By stock, Okta, an identity management software company, plunged 10.9%. Although its first-quarter revenue and net profit exceeded market expectations, the company's decision to maintain its outlook due to macroeconomic uncertainty led to a decline in its share price. Nvidia, ahead of its earnings announcement, is up 0.09%. Tesla is down 0.29%.
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