S&P 500 gains as Nvidia earnings and Fed rate cut loom

The S&P 500 saw a modest increase of 0.16 percent on Tuesday, closing at 5,625.80, as investors focused on the upcoming earnings report from Nvidia, according to CNBC. 

The Nasdaq Composite mirrored this gain, also rising 0.16 percent to finish at 17,754.82. The Dow Jones Industrial Average edged up by 9.98 points, or 0.02 percent, ending at 41,250.50, marking its second consecutive record close. 

Investors are particularly interested in Nvidia’s earnings, which are due to be released after the market closes on Wednesday. Nvidia, a key player in the artificial intelligence sector, saw its shares rise by 1.5 percent on Tuesday.  

The company's fiscal second-quarter results are anticipated to be a significant indicator of the current health of the AI market and tech stocks in general. 

Ross Mayfield, an analyst at Baird, noted that the market is in a “wait-and-see” mode ahead of Nvidia’s report, with little economic data of major importance expected until then.  

He pointed out that the market is currently experiencing a shift away from tech stocks, but Nvidia’s earnings could potentially reverse this trend. 

Investors are also navigating a challenging start to the month. 

However, optimism has increased following comments from Federal Reserve Chair Jerome Powell, who hinted that the central bank's next move would likely be to cut benchmark interest rates. Powell did not specify the timing, or the size of the rate cut. 

According to the CME Group’s FedWatch Tool, traders are overwhelmingly predicting at least a 25-basis point rate cut during the Federal Reserve’s policy meeting scheduled for September 17-18. 

Our daily newsletter is FREE and keeps you up to date with the world of benefits and pensions. Please complete the form below and click on SIGN UP to receive daily e-newsletters from Benefits and Pensions Monitor.

Our daily newsletter is FREE and keeps you up to date with the world of benefits and pensions.