The S&P 500 ended a four-day losing streak, driven by anticipation of Nvidia’s earnings and gains in technology stocks like Alphabet and Lowe’s, despite mixed individual stock performances and sector disparities. Market focus centered on Nvidia’s CEO guidance, geopolitical chip export restrictions, and significant M&A activity, highlighting both opportunities and challenges in the tech and energy sectors.
As the trading day neared its close, the S&P 500 snapped a four-day losing streak, buoyed by anticipation ahead of Nvidia’s earnings report. Nvidia’s stock was up about 2.9%, trading around $270 per share, with a price target of $270 over the next 12 months according to analyst Angelo Zino. The options market implied a one-day move of just under 7%, reflecting high stakes and investor interest in the company’s outlook. Market participants were particularly focused on comments from Nvidia’s CEO Jensen Huang, as his guidance for the coming year was seen as more consequential than recent quarterly results.
The broader market showed modest gains with the Dow Jones Industrial Average up by 41 points, the S&P 500 adding about 25 points, and the Nasdaq rising roughly 0.6%. Despite the overall positive movement, most individual names in the S&P 500 declined, with 305 stocks down and 194 gaining. Sector-wise, technology and communication services led the gains, while energy, utilities, and real estate lagged. Notably, Lowe’s was a top gainer, rising about 4% after reporting better-than-expected profits driven by strong consumer spending on home renovations and positive same-store sales growth.
Alphabet also stood out with shares up about 3%, boosted by positive investor sentiment following the release of its new Gemini AI model. The excitement around AI technologies contributed to Alphabet being the best-performing member of the “Magnificent Seven” tech stocks this year, with a nearly 55% gain. Meanwhile, the U.S. government announced plans to purchase up to ten large nuclear reactors, supported by a $550 billion investment fund from Japan, which helped nuclear energy stocks outperform despite the broader energy sector’s decline.
On the downside, Eversource Energy suffered its worst day since 2020 after Connecticut regulators rejected its request to sell a subsidiary, citing concerns over potential bill increases and reduced oversight. Shares fell more than 12%. Blue Owl Capital also declined nearly 1% after calling off a merger between two private credit funds amid investor concerns. In M&A news, Abbott Laboratories dropped 3% following reports it is nearing a major acquisition of Exact Sciences, whose shares surged nearly 24%. Exact Sciences is known for its colorectal cancer screening tests, which have been widely used since FDA approval in 2014.
The discussion also touched on geopolitical and regulatory issues affecting the chip industry, particularly U.S. efforts to restrict chip exports to China. The White House is pushing Congress to remove provisions from a defense spending bill that would limit chip exports, a matter that will impact companies like Nvidia and their sales strategies in markets such as India and China. Analysts noted that while China remains a challenging market, the long-term inability to access it could pose existential risks for chipmakers. The segment concluded with lighthearted banter among the hosts, reflecting on technology adoption and personal anecdotes.