U.S. benchmark equity indexes exhibited mixed performance on Wednesday as investors eagerly awaited the quarterly earnings report from Nvidia, a key player in the artificial intelligence sector. Nvidia's upcoming report is critical for stakeholders who are looking for affirmation concerning the burgeoning artificial intelligence investment narrative, with many viewing the company as a bellwether for future growth in the industry. The so-called Magnificent-7 stocks, which include Nvidia, encountered a downturn, entering technical correction territory.
Having experienced a decline of more than 10% since reaching their peak in December, these stocks have heightened scrutiny on Nvidia’s forthcoming earnings report. Investors are particularly attentive, given the importance of these results in assessing the potential future trajectory of AI investments. On the real estate front, U.S.
new-home sales experienced a decline, recording an annual rate of 657,000 in January, a decrease from December's upwardly revised figure of 734,000. This outcome fell short of the anticipated 680,000 rate highlighted in a survey by Bloomberg, marking a 1.1% drop in sales compared to January 2024. Economic experts are forecasting challenges for the new-home sales market, attributing these risks to high mortgage rates and potential tariffs on imported building materials from Canada and Mexico.
Additional concerns arise from possible labor supply issues associated with immigration policies from the Trump administration. In the commodities market, April West Texas Intermediate crude oil prices settled down by $0.12, concluding at $68.81 per barrel. Similarly, April Brent crude, which serves as the global benchmark, saw a drop of $0.30, resting at $72.72.
This decline is a reflection of expected rising supply, which mitigates the effects of a recent report indicating an unexpected drop in U.S. inventories. Turning to corporate news, Axon Enterprise reported a robust fourth-quarter performance, with non-GAAP earnings and net sales surpassing analyst expectations as compiled by FactSet.
This positive outcome spurred nearly a 15% surge in the company's shares. On the other hand, AppLovin faced significant challenges, witnessing a 12% drop in its stock price after short-selling firms, Fuzzy Panda Research and Culper Research, issued serious allegations against the company..