US stocks come under pressure
US stocks were under some pressure today, extending yesterday’s decline which was influenced by Nvidia's notable slump. Nvidia fell over 4% on Tuesday and dropped an additional 1.5% in premarket trading today. The market is keenly awaiting Nvidia's earnings release after the market’s close to assess the mega cap's performance and its potential to sustain the recent rally in the market. Given the continuing enthusiasm for artificial intelligence and the industry’s impact on sentiment, the company’s results could have a significant influence on the market as a whole.
The market saw some pressure from other stocks as well. Palo Alto Networks saw a sharp 25% drop after revising its annual revenue forecast downward. SolarEdge Technologies fell over 15% due to disappointing first-quarter guidance. On a positive note, Amazon's stock rose nearly 1%, ahead of its expected inclusion in the Dow Jones Industrial Average next week, replacing Walgreens Boots Alliance.
Additionally, investors look forward to the release of the FOMC meeting minutes today for more clues on the Federal Reserve's view on monetary policy. Interest rate cuts are expected to start in June following recent inflation data. As a result, the main US indices could see significant volatility if investors' expectations change.