Nasdaq in focus ahead of Nvidia earnings report

• Nvidia reports Q2 earnings today, Aug 28
   
• Strong earnings could boost Nasdaq
   
• Expected EPS: $0.64, up 139% YoY
   
• Expected revenue: $28.7B, up 113% YoY
   
• Implied potential move: +/- 9.81% around earnings date

The U.S. stock market fell slightly on Tuesday as investors took a wait-and-see approach ahead of key earnings report and economic data.

During yesterday’s trading session Nasdaq 100 Index fell below its 50-period moving average, indicating potential weakness in the tech sector.

The market's attention is now focused on the big earnings event – Nvidia.

Due to Nvidia's percentage weight (8.24%) in Nasdaq 100, it could have a profound impact on the Index.
 

The company's upcoming Q2 earnings report, due on Wednesday after the markets close, is a major focus for investors as the company's performance is seen as a beacon for the broader tech market.

Higher-than-expected earnings may result in Nasdaq Index moving higher, however a disappointing result may force the index to move below the 50-period moving average key support level.

Nvidia expectations

Nvidia is expected to report (for Q2 2024):

• $0.64 earnings per share - up 139% year-over-year
   
• $28.7 billion in revenue - up 113% year-over-year

At the time of writing, the implied potential move for the stock is +/- 9.81% around the earnings date (source: Bloomberg).

Not only are the markets expecting the company to beat current estimates, but they are also expecting the company to raise its guidance for Q3 2024.

Nvidia stock was in consolidation pattern during the past 6 trading session, reflecting the prevailing cautious sentiment.