Stocks Stutter, Dollar Sags; Nvidia Earnings In Focus

Major share markets turned hesitant on Monday, while the dollar and bond yields sagged ahead of inflation data that could pave the way for rate cuts in the United States and Europe.

All eyes are on Nvidia, which would have to report sales of $30 billion or more and guidance for the third quarter of $33 billion or above. I Photo: NVIDIA Asia Pacific Facebook

Meanwhile, Wall Street braced for earnings from AI darling Nvidia, Wayne Cole and Kevin Buckland reported for Reuters. Oil prices climbed after Israel and Hezbollah traded rocket salvos and airstrikes on Sunday, stirring worries about possible supply disruptions if the conflict escalates.

Brent rose 81 cents to $79.83 a barrel as of 0701 GMT, while U.S. crude added 80 cents to $75.63 per barrel.

Europe's broad Stoxx 600 index was flat in very early trading, while MSCI's broadest index of Asia-Pacific shares added 0.5%. Nvidia reports on Wednesday to sky-high market expectations.

The stock is up some 150% year-to-date, accounting for around a quarter of the S&P 500's 17% year-to-date gain.

"Nvidia will beat consensus expectations, they always do, but investors are so ingrained in seeing revenue come in $2 billion-plus above the analysts' consensus that we could easily see a sell-the-news event," said Chris Weston, head of research at broker Pepperstone.

That means Nvidia would have to report sales of $30 billion or more and guidance for the third quarter of $33 billion or above, he added.

In mixed Asian stock markets on Monday, Japan was a notable underperformer, with the Nikkei closing 0.66% lower as a stronger yen pressured exporter stocks.