Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading in New York on August 23, 2024.
Angela Weiss | AFP | Getty Images
Nasdaq 100 futures fell Wednesday night after Nvidia, the artificial intelligence pioneer that’s risen more than 150% this year, reported strong quarterly results that failed to meet investors’ lofty expectations.
Nasdaq 100 Futures It fell 0.9% S&P 500 Futures It fell 0.5%. Dow Jones Industrial Average Futures There was almost no change.
NVIDIA The stock fell about 7% in after-hours trading after the AI chip maker beat expectations on revenue and profit in its second-quarter results and gave a brighter outlook for current-quarter revenue, but failed to impress traders who were hoping for even better results.
NVIDIA
“Death, taxes and NVDA’s better-than-expected earnings are three solid things to expect. The problem is that the size of this better-than-expected earnings is much smaller than in previous quarters. Future guidance has also been raised, but again, not by as much as in the last quarter,” wrote Ryan Detrick, chief market strategist at Carson Group.
“It’s still a great company with 122% revenue growth, but it looks like the bar was set a little too high this quarter,” Detrick added.
Salesforce Shares rose 4% in after-hours trading after the business software giant beat expectations on second-quarter sales and profit and raised its full-year profit outlook. Crowdstrike The company lowered its full-year outlook after the global outages in July but its shares fell more than 2 percent after profit and sales beat expectations.
Wall Street ended the session lower as Nvidia shares fell ahead of the company’s earnings report, weighing on major stock indexes. Nasdaq Composite Index It fell 1.12% S&P 500 It fell 0.6%. 30 stocks Dow It fell about 159 points, or 0.39 percent.
The moves underscore Nvidia’s growing importance to the broader market: The semiconductor company, which this year saw its market capitalization exceed $3 trillion, briefly making it the world’s most valuable publicly traded company, and now accounts for about 7% of the S&P 500.
Corporate earnings season continues on Thursday, with several notable consumer stocks. Dollar General, Ulta Beauty and Lululemon Athletica. Campbell’s Soup and Best Buy It’s also on the deck.
The personal consumption expenditures price index for July is due to be released on Friday.
