Markets Decline Ahead of Nvidia Earnings and Heavy US Data Flow
The US market opened the week under pressure, and all three major indexes finished in the red. Investors reduced risk exposure ahead of an unusually intense news cycle that includes delayed macroeconomic reports and Nvidia’s highly anticipated earnings release. The company remains a dominant market driver as demand for AI infrastructure shapes growth expectations through 2024–2025.
Focus on Nvidia and Retail Earnings
Interest in Nvidia’s upcoming report is exceptionally high as the market seeks confirmation that demand for accelerators remains strong. The results will be released after Wednesday's close and are expected to set the tone for the coming weeks. Alongside that, Walmart, Target, and Home Depot will offer a clearer view of consumer spending trends, a crucial pillar of US economic growth.
A Wave of Macro Data Returns to the Market
Due to technical delays, a significant backlog of US economic reports accumulated, and they are now being released almost simultaneously. The market is digesting data on employment, industrial activity, mortgages, the trade balance, unemployment, regional Fed surveys, consumer sentiment, and PMI indicators. Such a dense data flow increases volatility, as any deviation from forecasts can instantly shift rate expectations.
The first signal came in stronger than expected: the Empire Manufacturing Index jumped to a one-year high. This complicates the picture, as stronger activity can imply tighter Fed policy. Even so, markets still price in nearly a 40% chance of a rate cut in December, especially after Fed Governor Christopher Waller reiterated support for easing, noting that the labor market is nearing “stall speed.”
Corporate Drivers and Market Reaction
Individual stories significantly influenced the session. Alphabet rose more than three percent after Berkshire Hathaway disclosed a large stake in the company, making it the only major tech name pushing the Nasdaq upward. Nvidia, Apple, and Meta all finished lower.
Semiconductors were broadly weak. Despite a bullish upgrade for Micron with a new price target of $300, the sector declined across the board. Qualcomm, Marvell, NXP, and Microchip fell more than three percent as traders positioned cautiously ahead of Nvidia’s results.
Crypto-related stocks were also hit hard after Bitcoin dropped to a seven-month low, dragging Coinbase and Galaxy Digital into sharp declines.
On the positive side, Zymeworks and Jazz Pharmaceuticals surged after strong late-stage trial results for their joint cancer therapy. Meanwhile, Dell plunged eight percent following a double downgrade from Morgan Stanley, which sharply shifted sentiment around the stock.
Bond Market Moves and Global Dynamics
The 10-year US Treasury yield declined slightly, reflecting hopes that incoming data may support further easing by the Federal Reserve. European bonds moved similarly, while the European Commission raised its GDP forecast for 2025. The ECB continues to highlight elevated financial stability risks amid global uncertainty.
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