NVIDIA earnings anticipation weighed heavily on U.S. markets, with the Dow Jones, S&P 500, and Nasdaq all closing lower amid profit taking and caution ahead of the report.

Markets fell as investors worried about high AI stock valuations, rising Treasury yields (near 4.6%), and persistent inflation concerns, which together pressured technology-heavy indices. The recent rally in AI-related stocks also led to increased caution as traders locked in gains near record highs.

NVIDIA remains at the center of the global AI trade, with expectations that its earnings could trigger a major market move due to its huge influence on semiconductor and tech stocks. Options pricing suggested a potential ~6.5% post-earnings swing, highlighting how significant the results are for broader market direction.

Investors are closely watching Nvidia’s data center revenue, AI demand outlook, Blackwell chip updates, and future guidance, which are seen as more important than headline earnings.

Overall, the market decline reflects pre-earnings caution, and Nvidia’s results are expected to determine whether the AI-driven rally continues or whether global equity markets face a broader pullback. Read the full blog here.

NVIDIA is set to release one of the most closely watched earnings reports of 2026, with Wall Street expecting quarterly revenue between $78.4 billion and $78.75 billion and earnings per share around $1.75 to $1.76, representing nearly 79% year-over-year revenue growth and more than 80% profit growth.

The company’s data center division, which contributes over 90% of total revenue, remains the key focus as demand for AI infrastructure continues to surge. Investors are closely monitoring Blackwell GPU shipments, gross margins, AI cloud partnerships, China sales exposure, and FY2027 guidance. 

Options markets expect NVIDIA shares to move roughly 6.5% after earnings, equal to an estimated $355 billion swing in market value, highlighting the company’s enormous influence on global markets. NVIDIA stock has already gained around 19% year-to-date in 2026, pushing its market capitalization above $5 trillion and increasing pressure on management to deliver exceptional guidance.

Analysts say future upside will largely depend on Blackwell chip demand, stable margins, continued hyperscaler spending, and CEO Jensen Huang’s outlook for AI growth in FY2027. Read the full blog here.

Global stock markets traded mixed on 20 May 2026 as the S&P 500 declined 0.42% to around 5,210, while the Nasdaq Composite fell 0.78% near 16,320, pressured by weakness in semiconductor and AI-linked stocks. Investors reduced exposure to high-growth technology shares after concerns emerged over slowing AI infrastructure demand and cautious earnings guidance from major tech companies.

Major US technology stocks, including Nvidia, Apple, and Microsoft, fell between 0.6% and 1.4% intraday, contributing to nearly $120 billion in combined market-cap erosion in a single trading session. The US 10-year Treasury yield stayed near 4.35%, keeping pressure on expensive growth-stock valuations and reducing investor appetite for risk-heavy sectors.

European markets remained resilient despite weakness in US equities. Germany’s DAX gained nearly 0.55% to 18,450, while the UK’s FTSE 100 advanced 0.38% to around 8,320, supported by strong performances in energy, industrial, and banking stocks. Energy companies benefited from crude oil prices holding near $82 per barrel, while European banking shares rose roughly 0.7% on improved net interest margin expectations.

Asian markets also reflected broader caution. Japan’s Nikkei 225 fell nearly 0.9%, while South Korea’s KOSPI dropped 0.6% amid chip export concerns. China’s Shanghai Composite remained mostly flat near 3,240, as stimulus hopes balanced weaker industrial data, while the VIX volatility index stayed near 15.8, signaling moderate uncertainty across global markets.

You can read the full blog on focus stocks here.

Market Live Dow S&P 500 Nasdaq Futures Dip Ahead Nvidia Earnings

US futures turned lower in cautious pre-market trade as investors prepared for one of the most important earnings events of the quarter, Nvidia’s results, expected to set the tone for AI-linked momentum across Wall Street. Nasdaq futures slipped nearly 0.3%, and S&P 500 futures fell 0.2%, while Dow futures traded lower by around 90 points in early action.

The market hesitation comes after a strong May rally that pushed the Nasdaq Composite up more than 12% from its April lows. NVIDIA alone has gained nearly 28% over the past six weeks, lifting its market capitalization back above $3 trillion ahead of earnings. Investors are now watching whether the company can justify those valuations with another quarter of explosive growth.

According to Yahoo Finance, Wall Street expects Nvidia to report quarterly revenue of nearly $43 billion, marking growth of more than 70% year-on-year. Adjusted earnings per share are projected to be around $0.89 to $0.93, compared with $0.61 a year earlier. Data center revenue above $37 billion remains the biggest focus for analysts.

Options markets are pricing in a potential 7% to 9% post-earnings swing in Nvidia shares, which could translate into hundreds of billions of dollars in market-cap movement within a single session. NVIDIA now accounts for roughly 6% of the S&P 500 and nearly 9% of the Nasdaq 100, meaning even a small move in the stock could heavily influence broader index direction.

Treasury yields also eased slightly before the earnings release. The 10-year US Treasury yield hovered near 4.43%, while the 2-year yield remained close to 4.89%. Investors are balancing AI optimism with concerns around delayed Federal Reserve rate cuts and slowing economic data.

MarketWatch reported that traders are also closely tracking semiconductor peers, including AMD, Broadcom, Super Micro Computer, and Micron, all of which have seen elevated volatility ahead of Nvidia’s numbers. Semiconductor stocks have contributed nearly 35% of the S&P 500’s total gains in 2026 so far.

Meanwhile, the CBOE Volatility Index (VIX) stayed near 17, signaling measured caution rather than panic. Analysts say Nvidia’s guidance for the July quarter, not just headline earnings, could become the deciding factor for whether the Nasdaq extends its rally or enters a broader pullback phase.