Midweek Market Mania: S&P and Nasdaq Soar to New Heights as Tech Eyes Nvidia’s Earnings
The S&P 500 and Nasdaq hit record highs Tuesday, as tech’s early wobble was swiftly bought up in anticipation of Nvidia’s highly anticipated earnings on Wednesday.
By 16:00 ET (20:00 GMT), the Dow Jones Industrial Average had gained 66 points, or 0.2%, while the S&P 500 edged up 0.3%, and the Nasdaq Composite ticked up 0.2%.
Tech sector sees gains ahead of Nvidia earnings
Tech stocks rebounded after a shaky start, as investors braced for Nvidia’s results, with the AI powerhouse expected to deliver a blockbuster report.
Palo Alto Networks (NASDAQ:PANW) dipped nearly 4%, trimming earlier losses, as analysts noted the cybersecurity firm’s latest billings forecast didn’t meet sky-high expectations.
Nvidia (NASDAQ:NVDA) hovered just above the flatline, with Wedbush predicting another earnings beat and raised guidance, citing strong demand for its diverse chip offerings.
Microsoft Corporation (NASDAQ:MSFT) climbed nearly 1% ahead of its Tuesday presentation, with Wall Street eagerly awaiting updates on its latest AI innovations.
More Fed cues awaited amid rate uncertainty
Federal Reserve Governor Christopher Waller reiterated the need for more evidence of slowing inflation before considering rate cuts, stressing that a strong labor market would delay any easing in monetary policy.
Retail sector in focus with Macy’s turnaround
The retail sector grabbed attention as Lowe’s (NYSE:LOW) and Macy’s (NYSE:M) reported earnings.
Macy’s stock jumped 5% after the department store chain raised its full-year adjusted earnings per share forecast, crediting its February turnaround plan.
Lowe’s stock fell nearly 3% after reporting a decline in quarterly sales, as inflation-weary Americans pulled back on big-ticket home improvement projects.
AutoZone (NYSE:AZO) stock dropped 3% after reporting flat domestic same-store sales for the quarter compared to last year.
Ether rallies on ETF optimism
Ether surged over 8% on Tuesday, fueled by optimism that the SEC might approve spot ether exchange-traded fund applications this week.
Viasat’s Revenue Forecast Misses the Mark, Shares Plunge Over 11%
Viasat’s crystal ball was a bit cloudy on Tuesday, as the company predicted annual revenue below Wall Street’s expectations due to a slowdown in its satellite services business, causing its shares to nosedive more than 11% after hours.
Anticipating a dip in U.S. fixed broadband revenue, Viasat blamed fiercer competition from wireless carriers like T-Mobile US (NASDAQ:TMUS) with their budget-friendly plans. To stay afloat, Viasat is pivoting from fixed broadband to mobility services, focusing on satellite-based connectivity solutions for governments.
Last year, Viasat acquired British rival Inmarsat for $7.3 billion to diversify its satellite and land-based communications. However, economic uncertainties and stiff competition from Starlink have put pressure on the company. Viasat President Guru Gowrappan mentioned that governments prefer multiple partners to avoid over-reliance, appreciating options in their connectivity solutions.
In the government systems segment, Viasat competes with the likes of Intelsat, L3Harris Technologies (NYSE:LHX), and EchoStar. Despite the challenges, this segment’s revenue jumped 77% to $385.8 million, surpassing analyst expectations of $340 million.
For fiscal 2025, Viasat expects revenue to remain flat, contrasting sharply with analysts’ nearly 7% growth forecast to $4.57 billion. Fourth-quarter revenue was $1.15 billion, just above the anticipated $1.09 billion. However, the company posted a loss of 80 cents per share, a stark contrast to the previous year’s $15.56 per share profit, with a net loss from continuing operations rising to $90 million due to higher interest expenses from the Inmarsat deal.
Investing midweek is like grabbing a slice of pizza on a Wednesday—it’s a smart move when everyone else is busy waiting for the weekend. The market is less crowded, the noise is turned down, and you can make decisions without the Monday blues or Friday frenzies clouding your judgment. Plus, midweek investors have that savvy, “I know something you don’t” vibe, quietly maneuvering through the trading floor like it’s their personal playground. So, while others are slogging through hump day, you’re busy turning it into a launchpad for your financial rocket.