US stocks slide ahead of Nvidia earnings

Markets trimmed some losses from early trading on Wednesday but still ended with a down day. S&P 500 moved lower by 0.6%. Nasdaq 100 was off 1.2%, and Russell 2000 dropped 0.7%. 

The two-year Treasury yield slipped lower by 3 basis points, hitting its lowest closing level since May 2023.

S&P 500 sectors were mostly down. Tech was the worst performer as the sharp losses of Super Micro Computer dragged the sector down by 1.4%. Once an AI darling, Super Micro Computer closed down 18.8%, wiping out more than $6 billion in market cap. Super Micro delayed its 10-K report filing one day after Hindenburg Research alleged the company had accounting issues, among other problems.

Financials and Health Care were the only two S&P sectors in the positive territory, adding 0.2% and 0.1%, respectively.

Nvidia was down 2.1% at the closing bell, along with the rest of Magnificent Seven stocks. The stock was off as much as 4.4% during intraday trading. In a week with minimal economic data, the chip giant’s earnings on Wednesday evening will not only indicate how sustainable the AI gold rush is, but may also assert an outsized influence on the whole market.