Dow Jones Dips as Nvidia Earnings Steal the Show – What’s Next?

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Ah, the market, ever the drama queen! U.S. stocks took a tumble, their woes largely centered on the much-hyped Nvidia earnings report that’s been on everyone’s lips. If only stocks could cry for attention like this every time. 😩

On the fateful day of May 28, U.S. traders were caught in their own little soap opera. The Dow Jones played the tragic hero, falling 124 points, or 0.29%, settling at 42,219 points. Meanwhile, the S&P 500 took a tiny stumble too, dropping by 0.14% to 5,907. But wait—our beloved Nasdaq decided to spice things up, gaining a grand 0.01%. A true miracle, no? 🎭

And what caused this melodramatic dip, you ask? The Federal Reserve had its say, of course. It was like watching the same plot unfold again, as they kept interest rates unchanged at 4-1/4 to 4-1/2 percent. This, after acknowledging that inflation was still a nasty beast to wrestle, not to mention the rising risks to employment due to tariffs. The Fed was also quite vocal about the distortions in trade. We get it, things aren’t perfect. 💸

And just when you think it’s over, inflation’s ugly head threatens to rear up once more. The Fed even pondered on whether it should embrace a new, “flexible” inflation framework. Flexibility, how charming. Meanwhile, the balance sheet keeps shrinking like a tragic hero’s fortunes. Drama in every corner! 😏

Traders Hold Their Breath for Nvidia’s Grand Performance

Ah, the pièce de résistance—Nvidia’s first-quarter earnings report, which everyone and their grandmother seems to be waiting for with bated breath. The stock has been on a rollercoaster this year, thanks to Trump’s tariffs and his not-so-charming bans on AI chip exports to China. But fret not, for things took a turn for the better. A nice little visit to the Middle East and a pause on AI chip restrictions lifted Nvidia’s spirits. 👏

Now, Wall Street, with all the confidence of an overly ambitious playwright, expects Nvidia’s earnings to outperform last year. Revenue is projected to hit $43.3 billion, with a dazzling earnings per share of $0.88. Much of this, of course, is thanks to the data center revenue, which is expected to come in at $39.2 billion—an increase of 74% from the previous year. An absolute triumph! 💡

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2025-05-28 21:28