Nvidia Drops 4.4% Ahead of Earnings Report

Discover Financial Services had the biggest gain in the S&P 500
By Newser Editors and Wire Services
Posted Feb 20, 2024 3:41 PM CST
Tech Stocks Pull Wall Street Lower
Pedestrians pass the New York Stock Exchange on Tuesday, Feb. 20, 2024 in New York.   (AP Photo/Peter Morgan)

Technology stocks led Wall Street broadly lower on Tuesday as chipmaker Nvidia pulled back ahead of its earnings report this week. Markets were closed on Monday for Presidents Day.

  • The S&P 500 fell 30.06 points, or 0.6%, to 4,975.51 The benchmark index is coming off only its second losing week in the last 16.
  • The Dow Jones Industrial Average fell 64.19 points, or 0.2%, to 38,563.80.
  • The Nasdaq composite fell 144.87 points, or 0.9%, to 15,630.78.
Nvidia, which has ridden a wave of investor enthusiasm over artificial intelligence, lost 4.4%, the AP reports. The stock has more than tripled over the past year.

Walmart rose 3.2% after reporting stronger-than-expected results for its latest quarter and issuing sales forecasts that came in ahead of what Wall Street was expecting. Home improvement retailer Home Depot wavered between small gains and losses and ended the day up 0.1%. It beat Wall Street's earnings forecasts, but gave investors a disappointing profit forecast for the year. Outside of earnings, credit card company Capital One Financial rose 0.1% as it moves ahead with a $35 billion buyout of Discover Financial Services. Discover soared 12.6% for the biggest gain in the S&P 500.

Investors have a relatively light week of economic updates ahead, with the latest data on home sales expected Thursday. The broader housing market remains tight, with demand still outpacing supplies. Mortgage rates also remain high, though they have been easing from their most recent peak in late October, when the average rate on a 30-year mortgage hit 7.79%.Companies from a broad range of industries will report their latest earnings this week. Nvidia will release its results on Wednesday along with online crafts marketplace Etsy. Online travel company Booking Holdings reports Thursday. The latest batch of results might give investors a clearer idea of the economy's path ahead. (More stock market stories.)

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