US stocks slip lower; caution ahead of key Nvidia results

U.S. stocks drifted lower Tuesday, with investors displaying a degree of caution ahead of the release of eagerly-awaited results from chipmaking giant Nvidia (NASDAQ:NVDA ). 

By 09:33 ET (13:33 GMT), the Dow Jones Industrial Average fell 80 points, or 0.2%, the S&P 500 dropped 13 points. or 0.2%, and the NASDAQ Composite slipped 75 points, or 0.4%. Sentiment buoyed by likely September cut 

The DJIA hit a record high on Monday, with overall sentiment relatively upbeat on the prospect of lower interest rates.

Dovish comments from Federal Reserve officials, especially Chair Jerome Powell, saw traders pricing in an at least 25 basis point cut in September, CME Fedwatch showed. 

The highlight of this week's economic calendar will be Friday's Personal Consumption Expenditures price index, the Federal Reserve’s preferred inflation yardstick.

Revised second-quarter GDP  figures on Thursday, along with the weekly report on initial jobless claims , are also on the agenda. Nvidia's earnings in focus 

However, ahead of this important economic data, all eyes will be on Nvidia’s quarterly earnings on Wednesday.

The stock is at the heart of a massive AI-driven rally in valuations over the past year. But this rally has come under threat over the past two months, at least as far as the broader tech sector is concerned.

Earnings from other major chipmakers, namely TSMC (NYSE:TSM ) and ASML (NASDAQ:ASML ), released in July, have suggested that the chipmaking sector was still primed to benefit from AI demand. 

Elsewhere, there are quarterly earnings due from retailer Nordstrom (NYSE:JWN ) after the closing bell, and they will be studied carefully for clues of the health of consumers.

Apple (NASDAQ:AAPL ) stock fell 0.6% after the iPhone maker announced late Monday that Luca Maestri will step down as chief financial officer from the beginning of the 2025.

Paramount Global (NASDAQ:PARA ) stock retreated 3.5% after executive Edgar Bronfman Jr withdrew from the race for control of the media conglomerate, likely allowing Skydance Media to gain control of the media conglomerate without a bidding battle. Crude hands back some recent gains

Crude prices fell Tuesday, handing some of the recent strong gains with traders seeking more cues on production disruptions in Libya and a wider war in the Middle East. 

By 09:33 ET, the U.S. crude futures (WTI) dropped 0.9% to $76.72 a barrel, while the Brent contract fell 0.8% to $79.76 a barrel.

Both benchmarks have gained some 7% over the past three sessions, rebounding from their lowest levels since early January, driven by expectations of U.S. interest rate cuts that could boost fuel demand, potential closures of Libyan oilfields and concerns over a wider Middle East conflict potentially disrupting supply from the key producing region.

(Ambar Warrick contributed to this article.)

Source: Investing.com