From Nasdaq:

Nasdaq lost ground on Wednesday ahead of Nvidia’s quarterly earnings report, as investors worried about a potential selloff of technology firms if the results disappoint. The chipmaker is expected to post a more than three-fold increase in fourth-quarter revenue, driven by robust demand for AI chips. Wall Street may slow its AI rally if inflation persists for the Federal Reserve.

Three of the 11 major S&P sectors were in the red, with rate-sensitive technology stocks down 0.9%. Energy stocks managed to gain 1.7%. The January inflation data complicates upcoming U.S. Federal Reserve interest rate decisions with the majority of traders now expecting a June start for rate easing. Minutes from the Fed’s January meeting will likely provide further clues on the timing of potential interest rate cuts.

At 11:23 a.m. ET, the Dow Jones Industrial Average and S&P 500 were down 0.09%, while the Nasdaq was down 0.43%. Cybersecurity firm Palo Alto Networks forecast third-quarter billings below analyst estimates, causing the company to slump 26.5%. This had a ripple effect, with the industry’s other major players seeing drops between 5% to 14.9%. Amazon gained nearly 1%, and will replace Walgreens in the Dow Jones Industrial Average next week.

Nvidia is in the midst of a bumper rally as a result of AI euphoria, portending good things from the company’s earnings report that were released after markets closed on Wednesday. The company needs to not only beat forecasts but also have a strong forecast for stocks to reaccelerate. Amazon will join the Dow Jones Industrial Average after being added to the index on March 18.580.



Read more: Nasdaq tumbles ahead of AI-darling Nvidia’s results, Fed minutes