Stocks Fall in Run-Up to Nvidia Results, Jobs Data
Wall Street traders gearing up for Nvidia Corp.’s earnings and a key jobs report refrained from making riskier bets as both events will be key in shaping the outlook for markets throughout the rest of 2025.
Equities kicked off the week with losses, with the S&P 500 extending its November decline. While the gauge is currently on pace to halt a streak of six months of gains, that could change if investors get reassurance on prospects for artificial intelligence and the continuation of Federal Reserve rate cuts — two of the main pillars of the bull market. Bonds wavered. The dollar rose.
“The monthly jobs report would normally dominate this week’s economic calendar, but with the AI trade struggling the past couple of weeks, Nvidia’s earnings are once again looking like a key piece of the market’s momentum puzzle,” said Chris Larkin at E*Trade from Morgan Stanley. “Both numbers may play a big role in determining whether the market is able to post its seventh-straight up month.”
Nvidia’s report on Wednesday will be picked over investors increasingly uneasy over stratospheric AI valuations even though the chipmaker is widely expected to deliver another earnings beat. The $4.6 trillion company faces questions about SoftBank Group Corp.’s recent exit as a shareholder, a move that’s further fueled concerns that “circular” investments are creating a bubble.
The Bureau of Labor Statistics will release the September jobs report Thursday, after it was delayed due to the government shutdown. The new data will help gradually shed light on the state of the US economy, though they’ll be more backward-looking than usual. While alternative data sources helped fill some of the gaps, policymakers, business leaders and investors have largely been flying blind without the critical government data.
The S&P 500 fell 0.4% as of 9:30 a.m. New York time
The Nasdaq 100 fell 0.5%
The Dow Jones Industrial Average fell 0.3%
Source : Bloomberg.com
