S&P 500 closes lower as chip stocks lead tech swings By Investing.com

Investing.com — Stocks closed lower on Wednesday as Nvidia’s weakness led to a decline in the technology sector ahead of the chipmaker’s quarterly results.

At 4:00 p.m. ET (8:00 p.m. GMT), the stock was down 0.4%, or 159 points, down 0.6%, while the stock was down 1.1%.

All eyes on Nvidia profit

NVIDIA Corporation (NASDAQ:), the world’s most valuable chipmaker, fell 2%, leading the broader tech sector lower as investors exercise caution ahead of the company’s second-quarter results after the bell. The company is expected to report $0.644 on revenue of $28.68 billion, with both measures increasing from the previous quarter.

Nvidia shares are up 160% so far in 2024 as the company has benefited greatly from increasing investment in artificial intelligence. The company makes the most advanced artificial intelligence chips on the market and is seen as a harbinger of demand for AI.

Super Micro Computer Inc (NASDAQ:) also weighed on the semiconductor sector, falling 19% after the AI ​​server provider said it would delay the publication of annual results. The announcement comes just a day after short-seller Hindenburg cited a host of problems at the company, including accounting issues and equipment shipments to Russia and a Chinese entity on the U.S. government’s watchlist.

PVH leads string of mostly disappointing retailer profits; Chewy looks forward to earnings podium

Shares of PVH (NYSE:) fell more than 6% after the clothing giant, which owns brands such as Calvin Klein and Tommy Hilfiger, reported a decline in second-quarter sales.

Shares of Bath & Body Works (NYSE: ) fell 7% after the retailer cut its annual sales forecast, a sign of weaker demand for the company’s higher-end products, such as perfumes and scented candles, amid still-high inflation.

Shares of Abercrombie & Fitch (NYSE: ) fell 16% after the clothing retailer’s CEO Fran Horowitz warned of an “increasingly uncertain environment” as macroeconomic conditions deteriorated, even after the company raised its annual revenue forecast.

Kohl’s (NYSE: ) shares closed slightly higher after the department store raised its annual profit forecast after beating second-quarter earnings expectations on tighter cost controls and lower inventories.

Shares of Chewy (NYSE: ) rose 11% after the online pet products retailer reported strong second-quarter earnings that beat expectations.

Cryptocurrency-related stocks follow lower prices

Stocks related to cryptocurrencies, including Coinbase Worldwide Inc (NASDAQ:), Riot Platforms (NASDAQ:), and MicroStrategy Incorporated (NASDAQ:) came under pressure after Bitcoin fell below $60,000. It appeared that investors were taking profits off the table due to Nvidia’s earnings results.

(Ambar Warrick and Noreen Burke contributed to this report)