On Wednesday, the stock market experienced a significant decline, with notable drops across major indices. Investors reacted to recent tariff announcements and prepared for an important earnings report from Nvidia, leading to widespread market anxiety.
Market Overview
The Dow Jones Industrial Average saw the largest drop, losing 0.6% during afternoon trading. The Nasdaq Composite, which had initially risen by up to 1%, ultimately fell below the flatline, reflecting the overall market’s concerns. The S&P 500 also decreased, losing as much as 0.3%.
Bitcoin followed this downward trend, falling by 3% to trade below $85,000, marking its lowest point since November. This market downturn was primarily driven by President Trump’s announcement of a 25% tariff on automobiles and other goods from the European Union, alongside upcoming tariffs against Mexico and Canada set to begin on April 2.
Nvidia’s Earnings Report
Nvidia’s quarterly results are being closely watched by investors, as the company has a history of strong performance following earnings announcements. Analysts are optimistic, forecasting a 73% increase in revenue to $38.2 billion and a 63% rise in earnings per share to $0.84 for the quarter.
This positive outlook is supported by significant purchases of Nvidia’s GPUs by major tech companies, which collectively spent an estimated $44 billion on these products in the 2024 calendar year. Despite this bullish sentiment, Nvidia’s stock has underperformed compared to the S&P 500 this year, facing challenges from tariff threats and export controls.
Corporate Developments
Amidst the market’s volatility, some companies reported positive earnings that offered a glimmer of hope. Lowe’s, the home improvement retailer, experienced a surge in its stock after reporting better-than-expected profit and revenue figures. The company noted a 0.2% increase in same-store sales, marking its first positive growth in nearly two years.
- Strong performance in professional and online segments
- Recovery from recent hurricanes
For the full fiscal year, Lowe’s expects total sales between $83.5 billion and $84.5 billion, with same-store sales anticipated to remain flat to slightly up.
General Motors and Super Micro Computer
General Motors also made headlines with its announcement of a 25% increase in its quarterly dividend and a new $6 billion stock buyback plan. Following this news, the automaker’s stock rose by approximately 5%, reflecting investor confidence in GM’s capital allocation strategy.
The CEO emphasized the company’s commitment to reinvesting in the business while maintaining a strong balance sheet and returning capital to shareholders. This positive sentiment follows GM’s previous share buyback plan, which aimed to repurchase up to $6 billion of its outstanding shares.
In a notable corporate development, Super Micro Computer’s stock surged over 25% in premarket trading after the company successfully submitted delayed regulatory filings to avoid a Nasdaq delisting. The server maker had faced scrutiny due to allegations of accounting manipulations, which led to a significant drop in its stock price and an investigation by the Department of Justice.
By meeting the Nasdaq’s deadline, Super Micro has alleviated some immediate concerns regarding its compliance and financial health, allowing investors to regain confidence in the company’s future prospects. As the market continues to navigate the complexities of trade policies and corporate earnings, the performance of key players like Nvidia, Lowe’s, and General Motors will be critical in shaping investor sentiment.
📎 Related coverage from: yahoo.com
