- A day after the big tech rally, stocks failed to gain traction, with traders bracing for Nvidia Corp.'s results, which are expected to put Wall Street's enthusiasm for artificial intelligence to the test.
- The S&P 500's August decline continued. Banks fell as S&P Global Ratings joined Moody's Investors Service in downgrading some US lenders in a "tough" environment. Macy's fell 14% as credit-card delinquencies rose, raising concerns about consumer health. After reaching an all-time high on the eve of its quarterly report, NVIDIA fell 2.8%. Many believe that the chipmaker's earnings, along with Jerome Powell's speech on Friday, will set the tone for markets.
- The options market is bracing for a 10% move following the results, indicating how significant NVIDIA'S results will be. With NVIDIA accounting for more than 3% of the S&P 500, the stock action may have broader implications. According to Nations Indexes data, NVIDIA is the only stock in the index for which the prices of call options - which are desirable if the stock rises - are higher than put options.