Wall St set for higher open on Nvidia earnings optimism
By Amruta Khandekar and Shristi Achar A
(Reuters) -Wall Street was set to open higher on Tuesday as optimism around Nvidia (NASDAQ:NVDA)'s keenly awaited earnings report kept megacap growth stocks on a strong footing, while a pullback in yields on longer-dated government bonds also provided some support.
After sharp losses in the previous week on worries over higher-for-longer interest rates and a surge in Treasury yields, U.S. equities regained some ground on Monday due to a rally in Nvidia and other tech stocks ahead of the chip designer's second-quarter earnings on Wednesday.
Shares of Nvidia climbed 1.9% in premarket trading on Tuesday after adding nearly 9% in the previous session and closing about 2% short of their all-time high of $480.88.
Other big technology and growth stocks also rose, with Tesla (NASDAQ:TSLA) advancing 4.0%.
Investors will be keen to see if Nvidia's results and forecast can match heightened market expectations following a blockbuster report last quarter that fueled a blistering rally in tech stocks amid the frenzy around artificial intelligence.
«What you could see potentially is earnings that are in line and guidance that is sort of in line or a little bit better than expected. The stock may sell off (a little), with people taking some profits,» said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield.
«If they really came out and said the demand for AI is less than expected, the entire market is going to be impacted.»
On Tuesday, the yield on the 10-year Treasury note slipped from an over 15-year high hit earlier in the session, helping release some pressure off equities.
The recent selloff in bonds was driven by evidence of a strong U.S. economy, which dampened hopes of
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