The Dow Jones Industrial Average opened slightly lower on Wednesday, dipping 38 points, or 0.1%, as investors braced for Nvidia’s highly anticipated earnings after the bell.
The S&P 500 and Nasdaq Composite each inched up 0.1% at the open, attempting to stabilise after a tech-driven four-day slide that marked the S&P 500’s longest losing streak since August.
Sentiment improved through the session, with the S&P 500 later climbing 1% and the Nasdaq gaining 1.6% as traders bet that Nvidia’s third-quarter results would reassure markets that the AI rally is not overheating.
Shares of the chipmaker rose more than 3% ahead of its report, with analysts expecting another significant beat and robust guidance fuelled by persistent demand for AI chips and related infrastructure.
Wolfe Research’s Chris Senyek argued concerns of an AI bubble are overblown, saying tech and communication services remain well-positioned even if the broader U.S. economy hits a soft patch.
Elsewhere, Bitcoin briefly dipped below $90,000 on Tuesday before rebounding, while gold edged higher. On the macro front, the US trade deficit fell nearly 24% in August to $59.6 billion.
