Stock Market Today: Investors Await NVIDIA Earnings
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Nvidia reported strong results despite a multibillion-dollar hit tied to U.S. regulations on sales of its AI chip to China.
While many analysts still count Nvidia as a top tech pick, they're also cautious on overhangs related to China restrictions and tariffs.
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Shares of Synopsys (NASDAQ: SNPS) fell on Wednesday. The move down came as the S&P 500 (SNPINDEX: ^GSPC) lost 0.6% and the Nasdaq Composite (NASDAQINDEX: ^IXIC) lost 0.6%. The chip design company's stock fell after news broke that the Trump administration told the company to stop selling its services to China.
Nvidia is slated to report fiscal first-quarter results after the market closes Wednesday, with Wall Street expecting another record quarter from the world's second-most valuable company.
“The White House announcement that it has reached an agreement with China that will drastically curtail tariffs on each nation’s goods is a positive step as the two countries work to reach a long-term, mutually beneficial trade pact," says National Association of Home Builders Chairman Buddy Hughes.
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The S&P 500 ( ^GSPC -0.67%) is down 1% year to date, but that number doesn't tell the whole story. The index initially advanced 4% as investors anticipated deregulation and tax cuts under President Trump. Instead, the administration shocked Wall Street with aggressive trade policies and the stock market crashed.
With first-quarter earnings season winding down, U.S. companies have so far reported earnings well above expectations. However, analysts have trimmed full-year earnings estimates to a gain of 8.7% instead of 14% at the start of the year, according to LSEG IBES.
The Nvidia CEO said he trusts President Donald Trump to have a plan with export controls — even though it marks the end of its Hopper business in China. “The key is to understand the limits and see if we can come up with interesting products that could continue to serve the Chinese market,