As the U.S. stock market opened on Tuesday, the Nasdaq experienced a significant downturn, led by Nvidia’s decline, while Walmart reached a record high, boosting the Dow. The chipmaker Nvidia saw its shares drop by over 4% in early trading, dragging down the tech-heavy Nasdaq index.
Market watchers are eagerly awaiting Nvidia’s financial results to be released after the market closes on Wednesday, which are expected to shed light on the company’s performance amid the growing demand for artificial intelligence (AI) technology.
Despite the overall bearish sentiment in the market, Walmart’s upbeat sales forecast for the fiscal year 2025 provided a boost to investors. The retail giant’s shares surged by 5.9% after announcing better-than-expected sales projections, along with a 9% increase in its annual dividend.
On the M&A front, Capital One’s $35.3 billion deal to acquire Discover Financial Services sparked a 10.8% jump in the latter’s stock price. This move reflects the ongoing consolidation in the financial services sector.
Home improvement retailer Home Depot, however, faced a 1.3% decline after forecasting sales for 2024 below Wall Street estimates. This outlook suggests that the demand for home improvement products may remain sluggish in the near term.
In the semiconductor industry, Intel saw a 2.6% increase following reports that the Biden administration is considering granting over $10 billion in subsidies to the company. Additionally, GlobalFoundries received a $1.5 billion subsidy from the U.S. government to support its semiconductor production.
Overall, the market remains cautious as investors await the release of minutes from the Federal Reserve’s latest policy meeting and monitor comments from central bank officials. With inflation data impacting market expectations, the timing of a potential interest rate cut remains uncertain.
