US stocks tumbled on Tuesday as fears over a nuclear escalation to the Russia-Ukraine war rattled markets, stealing focus from Nvidia (NVDA) earnings and other corporate results.
The Dow Jones Industrial Average (^DJI) led the declines, down about 0.8%. The benchmark S&P 500 (^GSPC) slid roughly 0.5% to fall below its election breakout level, while the tech-heavy Nasdaq Composite (^IXIC) also dropped around 0.5% on the heels of a mixed day for the foremost gauges.
Stocks are retreating as investors assess news that President Vladimir Putin has signed a revised nuclear doctrine that permits Russia to expand its use of atomic weapons.
The changes mean a large-scale aerial attack backed by a nuclear-power partner could prompt an atomic weapon response. It comes just days after President Joe Biden gave Ukraine the go-ahead to make use of US long-range missiles to strike inside Russia. Ukraine carried out its first such aerial attack in a border region on Tuesday morning.
US bond prices climbed alongside gains for gold (GC=F), and other safe-haven assets because the risk-off trade kicked in. Treasury yields — which move inversely to bond prices — fell, with the 10-year benchmark yield (^TNX) down 5 basis points to around 4.36%. Gold jumped almost 1% to trade at around $2,630 an oz.
Bitcoin (BTC-USD) prices rose over 1.2% to trade above $91,500 a token.
The geopolitical situation blotted out themes reminiscent of corporate earnings, President-elect Trump’s cabinet picks, the trail of rates of interest, and Wall Street’s view of where stocks are headed.
Retailers Walmart (WMT) and Lowe’s (LOW) posted quarterly reports before the bell, with investors watching out for hints to the resilience of the patron. Walmart stock popped following a lift to guidance after a powerful quarter. Lowe’s likewise beat on earnings and revenue, however the DIY giant’s shares slipped amid a negative outlook for sales.
Meanwhile, the countdown is on to Nvidia earnings on Wednesday, seen as a test of the AI trade that has powered gains on Wall Street. The chipmaker’s stock edged higher in premarket trading after getting bruised by a report of overheating issues with its flagship recent AI product.
Goldman Sachs strategists said they expect outperformance by Nvidia and its “Magnificent Seven” tech megacap peers to narrow next 12 months, in an S&P 500 (^GSPC) forecast setting a 6,500 goal by the tip of next 12 months.
LIVE 6 updates
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Stocks fall on Russia-Ukraine war escalation
US stocks fell on the open on Tuesday after President Vladimir Putin signed a revised nuclear doctrine, allowing Russia to expand its use of atomic weapons in a possible escalation of the Russia-Ukraine war.
The Dow Jones Industrial Average (^DJI) led the declines, down about 0.8%. The benchmark S&P 500 (^GSPC) slid roughly 0.5% to fall below its election breakout level, while the tech-heavy Nasdaq Composite (^IXIC) also dropped around 0.5% on the heels of a mixed day for the foremost gauges.
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Super Micro Computer soars over 25% after filing plan to avoid Nasdaq delisting
Super Micro Computer (SMCI), an AI server maker and Nvidia (NVDA) partner, soared over 25% premarket Tuesday. The sprint higher got here after the corporate on Monday submitted a filing with the Securities and Exchange Commission saying that it’s supplied a compliance plan with the Nasdaq to avoid delisting.
Also boosting the stock, Super Micro said it’s hired a recent auditor, BDO, after its prior accountant, Ernst & Young, resigned in late October.
The corporate was in hot water with the Nasdaq after delaying each its annual and quarterly filings to the SEC following a scathing report from short-selling firm Hindenburg Research. The report make clear potential accounting malpractices, violations of export controls, and shady relationships between top executives and Super Micro partners. The corporate is reportedly being investigated by the Department of Justice.
Even with this week’s surge, shares have tumbled roughly 56% over the past three months. After gaining as much as 300% earlier this 12 months, SMCI stock is now down over 20% in 2024.
Read the complete story here.
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Good morning. Here’s what’s happening today.
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Walmart’s e-commerce business continues to be on fire
Walmart (WMT) has worked very diligently behind the scenes the past two years to be a serious player online. The retailer has expanded its assortment online and has fine-tuned its “buy online, pick up in store” functionality — amongst other initiatives.
The efforts proceed to indicate up on earnings days.
Listed below are the corporate’s e-commerce results by division for the third quarter reported this morning:
These results are eye-popping for 2 reasons: 1) Walmart is not exactly a startup; 2) the competition online is as fierce as ever.
I’m talking to Walmart CFO John David Rainey live at 9:15 a.m. ET on Yahoo Finance. Rest assured, we’ll ask him about these online sales numbers!
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How Goldman sees the Mag 7 trade playing out in 2025
Hat tip to Goldman Sachs’s chief US equity strategist David Kostin for calling out specific stocks in his 2025 outlook piece that just dropped.
So often these year-end artworks from investment bank strategists simply serve up S&P 500 (^GSPC) targets, with various underlying scenarios explained. But often, no stock predictions.
Kostin is asking out one other 12 months of strong performance for the Mag 7 trade, just not as hot as recent years.
Says Kostin:
It’s an excellent point by Kostin, and is available in the face of all these Mag 7 stocks trading at wealthy multiples on hearty outlooks for profit growth. There is barely up to now you’ll be able to push a stock price using reasonable future financial assumptions!
You’ll be able to toil around on Mag 7 valuations on Yahoo Finance’s recent stock comparison tool here.
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If there may be one thing that might trip Nvidia bulls up
As I noted on Monday in our blog, expectations on Nvidia’s (NVDA) earnings and outlook are very robust … to say the very least.
If there may be one thing that might trip up the bullish trade the morning after earnings, it’s Nvidia’s guidance. While it’ll likely be above consensus, it might not be above consensus enough given the dynamics around Blackwell chip demand. Nvidia could opt to go stronger with guidance when it reports three months from now or so.
Necessary point on this from Stifel analyst Ruben Roy this morning in a note:
