Closing Bell: Markets Reverse Early Gains Post Nvidia Earnings

Key Points

• Markets ended sharply lower with the S&P 500 down 1.56%, the Nasdaq-100 off 2.38%, and the Russell 2000 falling 1.82%.
• The VIX closed at 26.42, signaling elevated near-term volatility and uncertainty in equities.
• Walmart reported mixed Q3 results, posting adjusted EPS of $0.62 and revenue of $179.5 billion, both slightly above expectations.

Markets ended lower today after an exceptional earnings report from Nvidia (NVDA) led to a sell-the-news reaction. The S&P 500 (SPX) closed down 1.56%, the Nasdaq-100 fell 2.38%, and the Russell 2000 (RUT) declined 1.82%. Consumer Staples was the only sector to finish positive, while Information Technology, Consumer Discretionary, and Industrials were the biggest decliners.

Markets Sell Off Post Nvidia Earnings

Equity markets opened strong following Nvidia’s (NVDA) earnings release last night, but momentum faded as the session progressed. Unemployment data failed to shift the tone set by several Federal Reserve officials, cryptocurrencies remained under pressure, and ongoing scrutiny around AI-related circular financing continued to weigh on sentiment. As a result, the market reversed early gains of more than 1.5% and closed near the lows of the day. The CBOE Volatility Index (VIX) ended at 26.42, reflecting elevated near-term uncertainty for equities.

Walmart Reports Mixed Earnings but Strong Guidance

Walmart reported mixed results in premarket trading. The company posted Q3 adjusted EPS of $0.62, slightly above the Street’s estimate of $0.60, while Q3 revenue came in at $179.5 billion, compared to expectations of $177.43 billion. U.S. comparable sales rose 4.5% year over year, though Walmart noted minor challenges stemming from price increases in several product categories due to global trade uncertainty. The company also highlighted continued benefits from the consumer “trade-down” effect.

Key Market Events for Tomorrow

• 07:30 AM ET: FOMC Member Williams Speaks
• 08:30 AM ET: FOMC Member Barr Speaks
• 08:45 AM ET: FOMC Member Jefferson Speaks
• 09:00 AM ET: FOMC Member Logan Speaks
• 09:45 AM ET: Flash Manufacturing PMI & Flash Services PMI
• 10:00 AM ET: Revised UoM Consumer Sentiment

Notable Earnings for Tomorrow

• Premarket: M
• Postmarket: N/A

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