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Wall Street opens in red as expectations grow for Nvidia results

Wall Street It opened this Wednesday in red, and the Dow Jones Industrial Average, its main indicator, fell a slight 0.06%, while expectations grow among investors regarding Nvidia’s quarterly results, which will be published at the close of today’s session.

Ten minutes after the opening of the New York stock market, the Dow Jones stood at 39,849 points, while the selective S&P 500 fell 0.07%, to 5,317 points, and the Nasdaq fell 0.03%, to 16,826 units.

Nvidia is the focus of attention today: analysts expect the microchip maker to triple its first-quarter revenue to $24.6 billion and its share price to rise to $5.19.

The company has become the ‘pretty girl’ of Wall Street, propelled by investors to the third place of the largest US companies by market value ($2.35 trillion), and investors see its results as a test for the artificial intelligence and chip sector.

The case of Nvidia – whose shares have risen 210% so far this year – describes the bullish force that AI euphoria has had on the technology sector and, therefore, on the selective S&P 500.

“Enthusiasm for AI has been one of the points of the ‘bullish mantra’ that gave rise to the ‘magnificent 7’ (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla), which accounted for much of the profits of the S&P 500,” analyst Tom Essaye notes today in his Sevens Report.

Meanwhile, the Target retail chain fell 8% this morning after publishing worse-than-expected results, due, according to the company, to weaker spending trends on non-essential products.

On the other hand, the yield on the benchmark 10-year Treasury bond rose this morning to 4.43%.

By sector, losses predominated, led by raw materials (-0.83%) and energy (-0.73%), while the greatest gains were for the industrial sector (0.14%) and the health sector. (0.04%).

Among the 30 Dow Jones stocks, the gains of Verizon (0.99%) and Cisco (0.86%) stood out, and the losses of Dow (-1.24%) and Nike (-0.79%) stood out. .

In other markets, Texas oil opened with a drop of 1.22%, to $77.70 a barrel, with traders expecting the Federal Reserve (Fed) to keep rates high for longer than expected. due to high inflation.

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Source: Elcomercio

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