On Wednesday, US equity indexes experienced a downturn after midday trading, as trading volumes dwindled ahead of the highly anticipated quarterly results from Nvidia, the prominent figure in the artificial intelligence sector. The S&P 500 index decreased by 0.6%, sinking to 5,594.7, while the Nasdaq Composite saw a more pronounced decline of 1%, settling at 17,580.3.
The Dow Jones Industrial Average also slipped 0.3%, closing at 41,111.9. Notably, trading volumes for the S&P 500 and Dow were over 50% below their average levels, while the Nasdaq's trading volume hovered just around half of its typical figure at the time of reporting. The sectors suffering the most included technology, consumer discretionary, and communication services, which led the intraday decliners. Amidst this backdrop, Nvidia, a crucial driver of gains in both the S&P 500 and Nasdaq since October, is anticipated to announce its quarterly earnings following the market closure.
Reports from Reuters suggested that Nvidia's earnings results could trigger a staggering $300 billion fluctuation in its stock price, a projection supported by analytics from the firm ORATS. In insights from the Federal Reserve, Atlanta Federal Reserve Bank President Raphael Bostic, who holds a voting position on the Federal Open Market Committee, is scheduled to deliver a speech at 6 pm E.T.
During a prior statement last week, Bostic indicated that it may be prudent to consider an earlier than expected reduction in interest rates, as the risks associated with inflation and employment appear to have achieved a more favorable equilibrium. The treasury yields displayed a mixed performance, with the ten-year yield and the two-year yield both increasing slightly, each by less than one basis point, to 3.84% and 3.87%, respectively. In the realm of corporate news, Super Micro Computer announced on Wednesday that it will not be able to file its annual Form 10-K report on schedule for the fiscal year ending June 30.
The company stated that additional time is required for management to conclude its assessment of internal financial reporting controls. Consequently, Super Micro is expected to submit a notification of late filing via Form 12b-25. As a result, the company's shares plummeted by 23.5% intraday, marking it as the poorest performer on both the S&P 500 and Nasdaq indexes. Meanwhile, shares for J.M.
Smucker experienced a 4.2% decline during intraday trading, ranking among the S&P 500’s underperformers after the company revised its fiscal 2025 forecast for adjusted earnings per share and net sales growth downwards. On the commodities front, West Texas Intermediate crude oil prices fell by 0.5%, trading at $75.12 a barrel.
In addition, US commercial crude oil inventories, excluding the Strategic Petroleum Reserve, saw a decline of 800,000 barrels in the week ending August 23. This drop followed a larger decrease of 4.6 million barrels in the preceding week, along with a projected decline of 2.8 million barrels based on a survey compiled by Bloomberg. Gold prices experienced a slip of 0.7%, settling at $2,536.10 an ounce, while silver registered a more substantial drop of 2.6%, trading at $29.65. With these developments, market participants remain vigilant as they await further economic data and insights that could influence future market movements..