US stocks fall led by Nvidia & Tech Sector

US stocks fell Tuesday led by Nvidia and a broader tech decline ahead of the chipmaker’s earnings report.

The Dow Jones Industrial Average dipped 64.19 points, or 0.17 per cent, settling at 38,563.80. The S&P 500 slipped 0.60 per cent to end at 4,975.51. The tech-heavy Nasdaq Composite lost 0.92 per cent to close at 15,630.78.

Shares of Nvidia, which is set to report earnings Wednesday after the bell, fell nearly 4.4 per cent. Although Nvidia is expected to post impressive results, investors have expressed concerns about its sky-high valuation. Amazon shares declined 1.4 per cent, while shares of Microsoft and Meta each lost about 0.3 per cent.

Capital One Financial has agreed to purchase Discover Financial Services in an all-stock deal worth US$35.3 billion. Capital One added less than 0.1 per cent following the announcement, while Discover jumped more than 12.6 per cent.

In other news, Walmart announced it will acquire TV maker Vizio for $2.3 billion, or $11.50 a share, leading shares of Vizio to climb higher by about 16 per cent. Walmart shares added more than 3 per cent after the retailer also beat quarterly earnings and revenue expectations, fueled by double-digit growth in the company’s global e-commerce sales.

The US listed shares of both BHP and Rio Tinto were sharply lower in line with a 5.1 per cent plunge in the spot price of iron ore in Singapore trade on Tuesday after China’s central bank unexpectedly cut its key five-year loan prime rate. Demand for iron ore remains weak as China steelmakers are still suffering negative margins when selling their finished steel.

Turning to US sectors, all closed lower overnight except for Consumer Staples. Tech was the worst performer.

In Australia, companies due to report results on Wednesday include Charter Hall Group, Domino’s Pizza, Lottery Corporation, Iluka Resources, National Australia Bank, Peter Warren Automotive, Rio Tinto, Santos, Scentre Group, Stockland, Ventia Services, Viva Energy, Wagners, WiseTech and Woolworths.

Futures

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

Currency

One Australian dollar at 8.40am was buying 65.48 US cents.

Commodities

Gold added 0.58 per cent. Silver fell 1.81 per cent. Copper added 0.49 per cent. Oil lost 1.28 per cent.

Figures around the globe

European markets closed mixed. London’s FTSE fell 0.12 per cent, Frankfurt lost 0.14 per cent, and Paris gained 0.34 per cent.

Turning to Asian markets, Tokyo’s Nikkei fell 0.28 per cent, Hong Kong’s Hang Seng added 0.57 per cent and China’s Shanghai Composite added 0.42 per cent..

Yesterday, the Australian share market closed 0.08 per cent lower at 7,659.05.

Ex-dividends
AGL Energy Limited (ASX:AGL) is paying 26 cents unfranked
Commonwealth Bank (ASX:CBA) is paying 215 cents fully franked
GQG Partners (ASX:GQG) is paying 2.8065 cents unfranked
Insurance Australia (ASX:IAG) is paying 10 cents 40 per cent franked

Dividends payable
HomeCo Daily Needs REIT (ASX:HDN)
HealthCo Healthcare and Wellness REIT (ASX:HCW)

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

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