Wall Street retreats on tech weakness

US stocks retreated overnight, pressured by a dip in Nvidia shares as investors awaited results after the bell.

The Nasdaq Composite dropped 1.12 per cent, closing at 17,556.03, while the S&P 500 slipped 0.6 per cent to end at 5,592.18. The Dow Jones Industrial Average lost 159.08 points, or 0.39 per cent, settling at 41,091.42.

Turning to US sectors, all closed lower overnight except for Health, Financials, and Utilities (closed flat). Technology was the worst performer on the day, dragged down by Tech giant Nvidia.

Nvidia's earnings report exceeded expectations, driven by strong demand for AI chips.

Despite production challenges, the company reassured investors of substantial revenue from its next-generation AI chips. While revenue for the current quarter fell slightly short of some analysts' optimistic forecasts, Nvidia's overall growth trajectory remains impressive.

Despite the positive earnings, shares declined in after-hours trading, potentially due to investor expectations for even higher revenue projections.

Other tech stocks also declined Wednesday, including Amazon and Alphabet, which both fell over 1 per cent. Microsoft dropped 0.8 per cent. AI darling Super Micro Computer plunged 19 per cent after announcing a delay in its annual report filing.

BHP Group tempered its near-term outlook for copper, suggesting a potential slowdown amidst China's economic challenges. However, the company remains bullish on copper's long-term prospects, predicting severe shortages and significantly higher prices. This cautious tone reflects softening expectations across metals markets as China grapples with sluggish growth and a prolonged property crisis.

Sterling hit its highest level against the dollar since March 2022 on Tuesday as investors prepare for the US Federal Reserve to start lowering rates more quickly than the UK’s central bank. The pound rose as much as 0.4 per cent to $1.32 after the top central bankers set out differing outlooks for interest rates in the US and UK late last week.

Futures

The SPI futures are pointing to a 0.3 per cent fall.

Currency

One Australian dollar at 7.25am was buying 67.85 US cents.

Commodities

Gold lost 0.59 per cent. Silver dropped 2.62 per cent. Copper fell 1.99 per cent. Oil dropped 1.34 per cent.

Figures around the globe

European markets closed mixed. London’s FTSE fell 0.02 per cent, Frankfurt added 0.54 per cent, and Paris closed 0.16 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei added 0.22 per cent, Hong Kong’s Hang Seng fell 1.02 per cent, while China’s Shanghai Composite closed 0.40 per cent lower.

Yesterday, the Australian share market closed flat at 8071.44.

Ex-dividends
Bapcor Limited (ASX:BAP) is paying 5.5 cents fully franked
Beach Energy Limited (ASX:BPT) is paying 2 cents fully franked
Corp Travel Limited (ASX:CTD) is paying 12 cents unfranked
Dalrymple Bay (ASX:DBI) is paying 5.375 cents 67.44 per cent franked
Eumundi Group Ltd (ASX:EBG) is paying 3.75 cents fully franked
Ebos Group Ltd (ASX:EBO) is paying 49.7142 cents 95.77 per cent franked
Evolution Mining Ltd (ASX:EVN) is paying 5 cents fully franked
Gryphon Capital (ASX:GCI) is paying 1.46 cents unfranked
Gold Road Res Ltd (ASX:GOR) is paying 0.5 cents fully franked
Insurance Australia (ASX:IAG) is paying 17 cents 50 per cent franked
Jumbo Interactive (ASX:JIN) is paying 27.5 cents fully franked
Kkr Credit Inc Fund (ASX:KKC) is paying 1.67 cents unfranked
Platinum Asia Ltd (ASX:PAI) is paying 1 cents fully franked
Perpetual Cred Trust (ASX:PCI) is paying 0.6875 cents unfranked
Platinum Capital Ltd (ASX:PMC) is paying 3 cents fully franked
REA Group (ASX:REA) is paying 102 cents fully franked
Regal Asian Invest (ASX:RG8) is paying 5 cents fully franked
Regal Partners Ltd (ASX:RPL) is paying 8 cents fully franked
360 Capital Mortgage (ASX:TCF) is paying 4.1667 cents unfranked
Ventia Services Group (ASX:VNT) is paying 9.35 cents 80 per cent franked

Dividends payable
Alcoa Corp (ASX:AAI)
Dexus (ASX:DXS)
Mirvac Group (ASX:MGR)
Waypoint REIT Ltd (ASX:WPR)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.

Disclaimer

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