Stock Markets: Everyone’s waiting for Nvidia

This report comes from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

Dow Jones hits new high
stock Slightly higher Before the release of Nvidia's earnings report. this Dow Jones Industrial Average It barely rose 0.02%, setting a second consecutive closing record. this S&P 500 Index and Nasdaq Index Both rose 0.16%. NVIDIA The company's shares rose 1.5% as investors focused on the chip giant's expected earnings report on Wednesday. Meanwhile, the 10-year Treasury bond yield Ministry of Finance rose slightly, while US oil prices Hope falls 2.2% Libyan production halted will be temporary.

“The most important stock”
NVIDIA It's been volatile lately. The AI ​​chipmaker's market value has increased ninefold since 2022, and at one point it became the world's most valuable public company. But soon after, the stock fell nearly 30% in seven weeks, losing $800 billion in market value. The stock has since rebounded to within 7% of its all-time high. Following the release of quarterly results on Wednesday, Wall Street is focused on Nvidia's performance as it could impact the broader market. “This is most important stocks Eric Jackson of EMJ Capital told CNBC. I think their rise is going to be surprising. What to expect from Nvidia's earnings.

Asia falls amid some bright spots
Asia-Pacific stocks were mostly lower on Wednesday. Australia announced that the CPI in July increased by 3.5% year-on-year, higher than the expected 3.4%, causing the S&P/ASX 200 index to fall by approximately 0.2%. Not all is bad in the region, though. JD.com shares rose about 1.4% after the Chinese online retailer announced a $5 billion buyback, while Xpeng Motors shares rose nearly 2.3% after the Chinese automaker announced a new mass-market car.

Cryptocurrencies suffer setbacks
According to data from Coin Metrics, Bitcoin price fell approximately 4.2% to $59,412.14 as of press time. Ethereum price fell by the same percentage, ending the day at $2,478.88. Steven Lubka, head of private client and family office at Swan Bitcoin, said: “The cryptocurrency market has fallen sharply, triggering a leverage-driven liquidation.” “This move appears to have been triggered by a sharp drop in Ethereum, And Ethereum has been struggling against Bitcoin all year.”

Nordstrom surges
Nordstrom The retailer's shares soared more than 7% in after-hours trading Posted profit beat Wall Street expectations. The retailer reported adjusted earnings of 96 cents per share, above analysts' expectations, on revenue of $3.89 billion, up 3.4% from a year earlier. Despite the earnings beat, Nordstrom provided cautious full-year guidance, expecting adjusted earnings per share to be between $1.75 and $2.05, with sales falling 1% to rising 1%.

(PRO) Renewed confidence in Nvidia
Everyone is waiting with bated breath for Nvidia's earnings, which will be released after the U.S. stock market closes on Wednesday. Some worry the company won't be able to sustain its momentum. But capital markets firm Truist Securities just raised its price target for Nvidia.

Although S&P 500 Index Just one step away from all-time highs PHLX Semiconductor Index Still more than 14% below its all-time high, many of its constituents are in bear market territory. As CNBC's Fred Imbert writes, it's a lot Investors have questioned the sustainability of recent gains.

Nvidia has been a major driver of the market's gains this year, with its shares up 160% despite recent losses. As the second-largest U.S. stock by market capitalization, investors are eagerly awaiting its earnings report to see whether it can maintain its artificial intelligence momentum. However, with The stock trades at 37 times its forward price-to-earnings ratio – Above the S&P 500 Technology Average – There are concerns about Nvidia's ability to meet high expectations, especially in terms of future guidance.

“Going back to the middle of the year, the S&P was up 15%, Nvidia alone contributed 5 percentage points of growthCiti U.S. equity strategist Scott Chronert told CNBC. The market needs to continue to see evidence of AI’s productivity-improving tailwind working.

Morgan Stanley semiconductor industry analyst Joseph Moore acknowledged that while competitors such as AMD, Broadcom and Marvel Nvidia proposes viable alternative Execution remains strong. “We expect them to hold share through at least 2025…the numbers are getting so big and so fast, I think that's the bigger risk,” Moore told CNBC. He believes Nvidia will maintain its 90% share AI processor market share.

Speaking on earnings, Truist Securities analyst William Stein raised price targets on Nvidia, CNBC's Pia Singh explain why. CNBC's Kif Leswing takes a look What are the expectations for profit?.

The wider tech sector has also come under scrutiny this week, with news from Dell and salesperson Add to mix. Technology stocks sold off in August, but dovish comments from Federal Reserve Chairman Jerome Powell helped reverse some of the downturn.

However, Nomura analyst Naka Matsuzawa warned that the economy was stronger than expected Gains from tech stocks could challenge market pricing for current interest rate cuts.

“U.S. tech earnings reports will be the main focus this week, and if the risk of a tech crash subsides, the pricing for rate cuts could be partially reversed,” he wrote in a note on Monday.

—CNBC’s Lisa Kailai Han, Brian Evans, Fred Imbert, Arjun Kharpal, Kif Leswing, Annika Kim Constantino, Gabrielle Fonrouge, Pia Singh, Spencer Kimball and Yeo Boon Ping contributed to this report.