Wall Street Braces for Opening Dip Amid Anticipation of Fed Minutes, Nvidia Results

On Tuesday morning, Wall Street is gearing up for a downturn as the financial community anticipates the Federal Reserve's meeting minutes and Nvidia's financial disclosures. Indicator futures are hinting at a drop, with New York index futures falling by 0.4% to 0.7% just before the market opens, setting the stage for a potentially challenging session.

Federal Reserve's Meeting Minutes Awaited

The Federal Reserve is scheduled to release the minutes from its October 31 to November 1 meeting at 2:00 p.m. New York time. There were no changes to interest rates at this meeting, and Fed Chairman Jerome Powell adopted a more dovish stance, which could signal important cues regarding future interest rate decisions and provide insights into the U.S. economic outlook.

Investors, who are currently not forecasting imminent rate hikes, will pay close attention to the language used in the minutes for hints at a potential rate decrease in early 2024.

U.S. Housing Market and Nvidia's Performance in Focus

Earlier in the day, existing home sales figures were released, serving as a key economic indicator. The U.S. housing market has shown a negative trend despite a brief early-year rally, crippled by soaring borrowing rates and prohibitive pricing, which dampen hopes for a recovery.

The spotlight will also shine on Nvidia later in the day as the company reports its earnings post-market close. Nvidia, whose chips are integral to artificial intelligence applications, has seen a spectacular run on the stock market this year, raising questions about the sustainability of its market valuation.

Analysts will not only scrutinize Nvidia's earnings but also the broader AI sector's pulse, looking at the company's future expectations.

Bond Market's Muted Response Ahead of the Fed Minutes

On the bond market, yields have slightly inched upwards as anticipation grows for the Federal Reserve's minutes. The ten-year note's yield is inching toward 4.43% following a close around 4.42% the previous day.

WallStreet, FedMinutes, Nvidia