Mixed Trends in New York Stock Market Ahead of NVIDIA's Earnings Announcement

Korea Economic Daily

Summary

NVIDIA's earnings announcement is drawing investor attention as it signals potential volatility in the U.S. stock market.
James Demert of Main Street Research stated that NVIDIA's earnings could influence investor optimism by focusing on the power of AI.
Amid rising U.S. Treasury yields and macroeconomic uncertainty, investors are focusing on the Federal Reserve's monetary policy direction.

U.S. Treasury Yields Rise Again Due to Japanese Bonds

On the 28th (local time), ahead of NVIDIA's earnings announcement, the U.S. stock market started with a slight rise but turned downward after opening.

At 10:20 AM Eastern Standard Time, the S&P 500 fell by 0.1%. Both the Nasdaq Composite Index and the Dow Jones Industrial Average fluctuated within a 0.1% range, similar to the previous day.

The long-term U.S. Treasury yields, which had stabilized the previous day, rose due to the influence of the 40-year Japanese government bond yield increase following a poor auction.

The 10-year U.S. Treasury yield rose by 3 basis points (1bp=0.01%) to 4.47%. This suggests growing concerns that the budget deficit may reach a dangerous level due to increased government spending. The market is also paying attention to the results of the $70 billion 5-year Treasury auction and the Federal Reserve's minutes release.

The Bloomberg Dollar Spot Index rose by 0.2%. The euro fell by 0.3% to $1.1299, and the Japanese yen fell by 0.3% to 144.83 yen per dollar.

Bitcoin traded down 0.8% at $108,767.06.

NVIDIA, ahead of its earnings announcement, traded at $135, down 0.2% from the previous day's rise. The options market expects the U.S. market to fluctuate by about 6% in either direction following NVIDIA's earnings announcement after the market closes.

James Demert of Main Street Research said, "NVIDIA's earnings are very important to the overall market as they can revive investors' general optimism and focus on the power of AI instead of tariffs and tax cuts."

Tesla, which surged more than 7% the previous day after CEO Elon Musk announced he would "sleep in the conference room, server room, and factory and be at the company 24/7," continued its upward trend, rising by 0.2%.

At 2 PM Eastern Time, the Federal Reserve is scheduled to release the minutes of its May meeting. Wall Street is expected to look for clues to gauge the central bank's monetary policy direction amid growing macroeconomic uncertainty.

Guest Reporter Kim Jung-ah kja@hankyung.com