Nasdaq Stumbles Amid Nvidia Slump and Sino-U.S. Trade Tensions
The Nasdaq is expected to open flat due to Nvidia's performance concerns connected to Sino-U.S. trade relations, despite Nvidia's strong revenue forecasts. Investors are cautious, and market movements reflect broader uncertainty, with focus on Federal Reserve's anticipated interest rate cuts in September amid economic indicators and geopolitical tensions.
The Nasdaq Composite set to open flat on Thursday as Nvidia shares drag, fueled by Sino-U.S. trade tensions impacting potential China sales. Nvidia's revenue forecast omitted China sales, raising investor concerns despite the company's licensing agreements.
Nvidia's shares fell 0.3% in premarket trading. Doubts linger about its data center spending while the firm's strong earnings projection and substantial $60 billion share buyback offered some solace to investors amid AI demand apprehensions.
Wall Street bullish sentiments sustained despite economic fluctuations. All eyes are on the Federal Reserve with a potential interest rate cut. The markets remain alert to upcoming economic data, including the Personal Consumption Expenditures index which might influence September rate decisions.
(With inputs from agencies.)
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