Account Info
Log Out
English
Back
Log in to access Online Inquiry
Back to the Top

Stocks Fall After Fed Minutes, Nvidia Posts Another Beat | Wall Street Today

avatar
Moomoo Recap US wrote a column · May 22 15:51
Stocks Fall After Fed Minutes, Nvidia Posts Another Beat | Wall Street Today
Good afternoon. The market is awaiting $NVIDIA(NVDA.US)$ earnings after the close today, and the market overall closed in decline after the FOMC meeting minutes were some members dared to speak the words "raise rates."
As a general recap, the market was lower Wednesday after fresh all-time highs. Shortly after 3 PM EST, the $S&P 500 Index traded 0.27% lower. The $Dow Jones Industrial Average fell about 0.51%, and the $Nasdaq Composite Index fell 0.18%%.
MACRO
Wednesday, the FOMC meeting minutes from the April 30 rates decision, many FOMC members commented on their uncertainty about when rates should come down. Several participants said they were willing to raise rates further.
The committee, during their April 30-May 1 meeting, found that uncertainty came from the possibility that "high interest rates may have smaller effects than in the past" and that "longer-run equilibrium interest rates may be higher than previously thought." Worse yet, some members feared U.S. economic potential output may be lower than previously estimated.
Participants said interest rates would stay put unless inflation numbers were clearly at 2%, or the labor market clearly weakens. Members said they would be willing to raise rates if "risks to inflation materialize in a way that such an action became appropriate."
This week, investors will also watch numerous Fed speeches. Federal Reserve Governor Christopher Waller said on Tuesday that if economic data continues to weaken over the next three to five months, the central bank might consider lowering interest rates by the end of 2024.
Last week, Wednesday's CPI numbers for April came in right at expectations. Prices advanced 3.4%, and core prices advanced 3.6% in April compared to a year ago, and 0.3% month over month.
SECTORS
In sectors, the Solar sector tracked by moomoo stood out, up 7% led by $SunPower (SPWR.US)$, a stock exploding 20% after the firm announced it would offer Tesla Powerwalls.
Stocks Fall After Fed Minutes, Nvidia Posts Another Beat | Wall Street Today
Meanwhile, in commodities, Crude Oil Futures pulled back 1.4%, while the EIA said crude inventories increased by 1.8M barrels after last week's 2.4M cut, alongside declines in Gold and Silver, down 1.39% and 2.6%. Bitcoin pulled back about 1%, while Eth fell 3%.
MOOVERS
$NVIDIA(NVDA.US)$ reported Q1 earnings that beat expectations Wednesday. Revenue for the first quarter was up 18% from the previous quarter, according to the release, and up 262% from a year ago.
The firm posted earnings of $6.12/share compared to expectations of $5.59, based on 36 estimates. Revenue came in at $26.04B in the quarter, compared to $24.65 estimated. Eyes were on data center revenue, which made up most of the firm's profit, coming in at $22.6B vs. estimates of $21.06B.
$Target (TGT.US)$'s fiscal first-quarter earnings missed Wall Street's estimates by 3C, and were 1% below last year's $2.05. Shares in the firm fell 8% in early trading, the lowest decline on the S&P 500.
The largest gainer on the S&P 500 was $First Solar (FSLR.US)$, a stock that received a UBS analyst price upgrade. the stock climbed 9%.
$PDD Holdings (PDD.US)$ climbed 3% after the firm reported sharp increases in first-quarter results on Wednesday as the Chinese e-commerce platform benefited from improving consumer sentiment and demand.
$Lululemon Athletica (LULU.US)$ fell 6%, the lowest on the Nasdaq 100, after the firm announced its Chief Product Officer Sun Choe was stepping down.
In sectors, the Solar sector tracked by moomoo stood out, up 7% led by $SunPower (SPWR.US)$, a stock exploding 20% after the firm announced it would offer Tesla Powerwalls.
Source: Bloomberg, MarketWatch
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See this link for more information.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
29
2
2
+0
1
Translate
Report
156K Views
Comment
Sign in to post a comment