In today’s stock market, The Dow Jones Industrial Average notched a record close on Monday, rising over 0.1% to a new high of 41,240.52, while the S&P 500 and Nasdaq Composite slid amid growing anticipation of interest rate cuts and Nvidia’s upcoming earnings report. Investors are closely watching Nvidia’s performance this week, as it could determine market sentiment, especially for the AI-driven stock rally. Oil prices also surged by 3% due to production shutdowns in Libya and rising Mideast tensions.
Nvidia Earnings to Set the Tone for Market Sentiment
All eyes are on Nvidia’s earnings report, expected on Wednesday. The outcome will likely influence the broader market mood, especially for the tech sector, which has been a key driver of recent stock gains. If Nvidia fails to meet expectations, it could put a damper on the AI trade and challenge the market’s recovery from August lows.
Stock Market: Fed Rate Cuts and Economic Data in Focus
Investors are also preparing for potential interest rate cuts, with markets pricing in a total reduction of 1% by the end of 2024. The timing of these cuts remains uncertain, with three Fed meetings left in the year. Additionally, key economic data, including the PCE inflation index and second-quarter GDP, will further shape expectations for the Fed’s rate path.
