Nvidia to Announce August-October Earnings After Market Close
Will It Ease Concerns Over an AI Bubble? Investors on Alert
October FOMC Minutes to Be Released in the Afternoon
The three major indices of the New York Stock Exchange in the United States rose on the 19th (local time). Although the market had recently declined due to concerns over the overvaluation of artificial intelligence (AI) related stocks, bargain buying appeared to be flowing in ahead of Nvidia’s earnings announcement scheduled after the market close. Later in the afternoon, the minutes of the Federal Reserve’s Federal Open Market Committee (FOMC) will also be released.
On the 19th (local time), a trader is working on the trading floor of the New York Stock Exchange (NYSE) in the United States. Photo by AFP Yonhap News
As of 10:25 a.m. on the same day at the New York Stock Exchange, the blue-chip Dow Jones Industrial Average was up 122.76 points (0.27%) from the previous trading day, standing at 46,214.5. The S&P 500 Index, focused on large-cap stocks, rose 63.65 points (0.96%) to 6,680.97, while the tech-heavy Nasdaq Index jumped 352.553 points (1.57%) to 22,785.399.
By stock, Nvidia, which is set to announce its third-quarter earnings later in the day, was up 3.38%. Financial information provider LSEG projected that Nvidia’s revenue for the third quarter of its fiscal year (August to October) would reach $54.92 billion, a sharp 56% increase compared to the same period last year. Wall Street expects Nvidia to continue posting strong revenue growth, driven by robust demand for AI chips and infrastructure. However, among investors who had previously bought in on AI optimism, concerns are growing about massive capital expenditures and the pace of monetization. Oracle was up 3.02%, and Palantir was up 0.79%. Meanwhile, U.S. retailer Target saw its share price fall by 0.62% after reporting a decline in third-quarter sales and lowering the upper end of its annual earnings outlook.
Chris Senyek, Chief Investment Strategist at Wolfe Research, said, “Concerns about an AI bubble bursting are, at least for now, exaggerated. Even if the broader U.S. economy faces a slowdown in economic indicators, technology and communication services companies are well positioned to weather a temporary storm.” He added, “We are maintaining our buying positions in AI-related stocks despite the weak market. We plan to buy more aggressively if Nvidia delivers a positive surprise or if technical trends become more subdued.”
Later in the afternoon, the minutes of the October FOMC will be released. The Fed has cut its benchmark interest rate by 0.25 percentage points at each of the past two meetings due to concerns over slowing employment, but there are diverging opinions among Fed officials regarding the rate path for December. The minutes are expected to provide a clearer picture of the officials’ economic and rate outlooks.
One day later, on the 20th, the nonfarm payroll report for September will be released. The release of employment reports for September and October had been delayed due to the federal government shutdown, which began on October 1 and lasted a record 43 days. However, with the shutdown ending on the 12th, previously unreleased inflation and employment indicators are now scheduled to be announced sequentially. However, the October employment report is expected to omit the unemployment rate indicator due to disruptions in data collection.
U.S. Treasury yields are moving sideways. The 10-year U.S. Treasury yield, a global benchmark, is at 4.12%, while the 2-year U.S. Treasury yield, which is sensitive to monetary policy, is at 3.57%, both unchanged from the previous day.
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