Equity Markets Conclude Mixed Ahead of Nvidia’s Earnings Release

US benchmark equity indexes ended Tuesday on a mixed note amid escalating Russia-Ukraine tensions and anticipation of Nvidia’s (NVDA) quarterly earnings.

The Nasdaq Composite climbed 1% to close at 18,987.5, while the S&P 500 added 0.4% to reach 5,917. Meanwhile, the Dow Jones Industrial Average slipped 0.3% to 43,268.9. Technology stocks led the gains, while energy and financials were the weakest performers.

Ukraine reportedly struck a Russian weapons depot using US-supplied missiles, according to CNN, citing US officials. The Biden administration recently approved the use of longer-range American weapons against Russian targets, the report added.

In the bond market, the US 10-year Treasury yield declined 2.2 basis points to 4.39%, while the two-year yield held steady at 4.28%.

Nvidia, set to release its fiscal Q3 earnings on Wednesday, saw its shares surge 4.9%, making it the top gainer on the Dow and one of the best performers on the Nasdaq and S&P 500. Truist expects the chipmaker’s revenue to soar nearly 83% year-over-year, citing a substantial backlog indicating robust demand.

Super Micro Computer (SMCI) emerged as the day’s standout, with shares skyrocketing 31%, the highest gain on both the S&P 500 and Nasdaq. The AI server manufacturer announced the appointment of BDO USA as its independent auditor and submitted a compliance plan to the Nasdaq Stock Market.

Walmart (WMT) raised its full-year forecast after reporting stronger-than-expected Q3 earnings, bolstered by growth across all segments. Its shares rose 3%, marking the second-largest gain on the Dow.

Conversely, Lowe’s (LOW) shares dropped 4.6%, one of the sharpest declines on the S&P 500, despite a smaller-than-expected dip in Q3 sales and an upgraded full-year outlook. The company attributed the decline to weaker demand for high-ticket discretionary DIY items.

Incyte (INCY) was the S&P 500’s worst performer, falling 8.3% after halting enrollment in a phase 2 study for chronic spontaneous urticaria due to preclinical toxicology findings. The company also noted its phase 2 data for cholestatic pruritus did not support further development.

Oil prices inched higher, with West Texas Intermediate crude rising 0.7% to $69.66 per barrel. Gold advanced 0.8% to $2,635.50 per ounce, while silver gained 0.3% to $31.32 per ounce.

In economic developments, US housing starts fell more than anticipated in October as gains in multi-family construction were offset by declines in single-family homes, government data showed. Oxford Economics noted that hurricanes Helene and Milton contributed to the weakness in the South but expects a recovery as rebuilding efforts gain momentum.