U.S. stocks fell on Wednesday afternoon as investors awaited Nvidia’s important earnings report, which many believe will affect the recent AI-driven market rally and overall investor mood.
The S&P 500 dropped 0.5%, the Nasdaq decreased by 0.7%, and the Dow Jones slipped by 38 points. Nvidia, a key player in the artificial intelligence sector, was set to release its much-anticipated earnings after the market closed.
Market Shook as Retail Stocks Drop Across the Board
Meanwhile, retail stocks faced significant pressure. Target reported its largest earnings shortfall in two years. It lowered its future guidance, pointing to weaker spending on non-essential items and rising costs.
This news caused Target’s shares to plunge over 21%. Other retailers like Dollar Tree, Dollar General, and Five Below saw their stock prices fall by over 2%. Additionally, TJX Companies’ shares went down by 1.7%, and Home Depot’s stock declined by 1.4%.
Furthermore, increasing geopolitical tensions between Russia and Ukraine added to market worries, especially after reports of missile strikes. Investors remained cautious amid these developments.