- US stocks dropped on Tuesday as the AI trade cooled down ahead of Nvidia's earnings report.
- Shares of Nvidia and Super Micro Computer both fell by about 5% in Tuesday trades.
- Solid earnings results from Walmart and Home Depot painted a solid picture of the US consumer.
US stocks dropped on Tuesday with the AI trade cooling down ahead of Nvidia's fourth-quarter earnings results.
Nvidia and Super Micro Computer stock both declined by about 5% on Tuesday as investors take profits ahead of $4 kicks off his company's earnings call after the market close on Wednesday.
Nvidia has been largely responsible for spurring a rally in tech stock over the past year thanks to excitement towards artificial intelligence. Now, investors want to see how much financial strength is behind the AI hype.
Meanwhile, retailers $4 and $4 reported earnings on Tuesday, with both companies beating revenue and profit projections. Walmart stock jumped 3% after it announced a 9% dividend hike and prepares for a 3-for-1 stock split later this month, while Home Depot stock traded about flat.
Of the 79% of $4 companies that have reported earnings results so far, 80% beat profit estimates by a median of 7% and 64% are beating revenue estimates by a median of 3%, according to Fundstrat.
Here's where US indexes stood at the 4:00 p.m. closing bell on Tuesday:
- S&P 500>$4: 4,975.51, down 0.6%
- Dow Jones Industrial Average>$4: 38,563.80, down 0.17% (-64.19 points)
- Nasdaq Composite>$4: 15,630.78, down 0.92%
Here's what else happened today:
- $4 to 5,200, representing potential upside of about 4% from current levels. The bank said strong earnings were behind the change.
- $4 on Wednesday, according to Wedbush analyst Dan Ives.
- $4 according to analysts.
- $4 launch until early 2025.
- $4 when it reports its fourth-quarter results on Wednesday.
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