Wall Street faces a wave of risk-off sentiment on Wednesday, as traders adopt a cautious stance ahead of NVIDIA Corp. (NASDAQ:NVDA) earnings, which are set to be released after the market close.
At midday trading in New York, all major equity indices were in the red, weighed down by broad declines in chipmakers and tech stocks.
The iShares Semiconductor ETF (NYSE:SOXX) fell 2%, underperforming the broader tech-heavy Nasdaq 100, down 1.1%.
The CBOE Volatility Index or VIX, a key barometer of the fear in the market, rose 8%.
As the last of the Magnificent Seven megacaps to report earnings, Nvidia’s results are viewed as a crucial indicator of whether the recent market rebound has more room to run, potentially pushing toward new all-time highs, or if it’s time for investors to dial back risk.
Key metrics to watch include whether Nvidia surpasses the projected $28.7 billion in quarterly revenue — a staggering 156% increase from the same quarter last year — and $0.645 earnings per share, more than triple from the same period in 2022.
Nvidia’s forward guidance will also be critical, as investors seek insight into the demand for its leading AI-related chips and any challenges posed by China.
In a significant achievement during Wednesday’s session, Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK) reached the milestone of a $1 trillion market valuation.
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