Wall Street Waits With Bated Breath For Nvidia Earnings After Tech Selloff, Fed Minutes Eyed: Analyst Flags This As Biggest Risk For Market

Given the crucial nature of this event, caution is likely to be the predominant sentiment with investors anxiously awaiting Nvidia’s performance. This anticipation is further amplified by the uncertainty surrounding its ability to meet the lofty expectations placed upon it.

Adding to the market’s concerns are upcoming speeches by Federal Reserve officials and, more importantly, the Fed minutes. Both pronouncements hold the potential to shed light on the future trajectory of interest rates, another significant factor influencing investor sentiment.

Cues From Tuesday’s Trading:

Three key developments weighed down the markets on Tuesday:

These factors contributed to a negative market atmosphere, pushing major averages down:

US Index Performance On Tuesday

The biggest risk for the market is the Fed, according to Fund Strat’s Tom Lee. The market needs to broaden for the sustenance of the rally and it’s going to broaden when interest-rate cuts begin to be priced in and investors begin to think about the roadmap, Lee said in a CNBC interview.

“If inflationary pressures don’t ease and the Fed starts to sort of second guess that, I think it puts a lot of pressure on stocks,” he said.

Although the probability of a Fed rate hike is very low if the market begins to price that in, it would put pressure on stocks, he added.

Futures Today

Futures Performance On Wednesday (as of 6:46 am ET)

FuturesPerformance (+/-)
Nasdaq 100-0.46%
S&P 500-0.21%
Dow-0.18%
R2K-0.47%

Upcoming Economic Data:

Atlanta Fed President Raphael Bostic is scheduled to give the welcoming remarks at the Airports Council International CFO Summit hosted by the Regional Economic Information Network of the regional Fed bank at 8 a.m. ET.

Richmond Fed President Thomas Barkin is scheduled to give a radio interview at 9:10 a.m. ET.

Fed Governor Michelle Bowman will make a public appearance at 1 p.m. ET.

The Treasury will auction 20-year bonds at 1 p.m. ET.

See Also: How To Trade Futures

Stocks In Focus:

Commodities, Bonds, Other Global Equity Markets:

Crude oil futures fell 0.42% to $76,72 in early European session on Wednesday after the commodity fell by 1.13% on Tuesday. The benchmark 10-year Treasury note slipped 0.004 percentage points at 4.271%.

Most Asian markets retreated on Wednesday ahead of some key U.S. catalysts, although the Chinese and Hong Kong markets posted strong gains as domestic traders began to bake in stimulatory measures from authorities. The New Zealand market rose modestly for the day.

European stocks showed cautious optimism by late-morning trading.

Read Next: Government Debt Exceeds 120% Of GDP: Why Former IMF Economist ‘Very Worried’ About US Fiscal Crisis

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