Wall Street made an indecisive start to the week on Monday, with the main US indices wavering as investors weighed the risk of war-driven inflation against a packed schedule of corporate earnings.
By midday in New York the S&P 500 was hovering around 7,392, slightly lower on the day, while the Dow Jones Industrial Average was little changed near 49,480 and the technology-heavy Nasdaq Composite was off about half a per cent at roughly 26,100.
The cautious mood reflected the crosscurrents now buffeting markets. The closure of the Strait of Hormuz and the conflict with Iran have stoked fears of a renewed pickup in inflation, even as resilient corporate profits have kept equity indices close to record highs.
The week’s defining event is expected on Wednesday, when Nvidia reports quarterly results after the close. Analysts expect revenue of roughly $78bn, driven by continued demand for its artificial-intelligence data-centre chips, and the figures will be read as a verdict on whether the spending boom underpinning the market still has momentum.
Nvidia’s report is one of several. Target is also due to deliver results on Wednesday, and Walmart on Thursday, giving investors a fresh reading on US consumer spending alongside the technology sector’s headline numbers.
Nvidia’s shares carry an outsized influence over the broader market, and traders have noted that the stock has often fallen after recent earnings reports even when the company beat forecasts — a sign of how high expectations have climbed.
With valuations stretched and the geopolitical outlook unsettled, analysts said the week could set the tone for equities through the early summer, depending on whether Nvidia validates the bullish case or prompts a wider reassessment.