A decline in some of the world's largest technology companies impacted stocks on Wall Street in anticipation of Nvidia's earnings report. The Nasdaq index reported a decrease of 0.35%, standing at 19,449.76 points, while the Dow Jones Industrial Average increased by 0.19%, reaching around 43,480.82 units. Meanwhile, the S&P 500 traded around 6,808.88 points with an increase of 0.06%.
Just days before Nvidia releases its results, it is reported that hedge funds' net exposure to mega-cap companies, known as the "Magnificent Seven", has reached its lowest level since April 2023. Regarding European markets, Germany's DAX increased by 0.34%, standing at 22,337.62 points, while Spain's IBEX 35 grew by 0.08%, reaching 12,958.46 units. In contrast, France's CAC 40 declined by 0.99% and London's FTSE 100 decreased by 0.36%.
In the international oil market, West Texas Intermediate (WTI) recorded a decrease of 0.04%, reaching $70.37 per barrel, while Brent rose by 0.04%, trading at $74.46 per barrel. The chipmaker lost 2.5%, while Microsoft sank 1.5% after canceling data center capacity lease contracts in the United States, raising concerns about its excess artificial intelligence (AI) computing capacity.
Investors brace for potential volatile events, as Nvidia's results could be the start of a series of developments that could affect the market. In the Mexican Stock Exchange, the S&P/BMV IPC fell by 0.36%, standing at 53,546.93 points, while the FTSE-BIVA of BIVA declined by 0.48%, at 1,079.13 points. Analysts from Grupo Financiero Banorte note that investors are focused on the technology sector's results, as well as the political situation in Germany and trade tensions between the United States and China.
The performance of stock indices in Europe is also mixed, reflecting investors' caution amid market uncertainty.
