As of press release, the NASDAQ is down 0.09%, the S&P 500 is down 0.05%, and the Dow is down 0.01%.

The US stock earnings report became the focus. Retailer Target's profit fell short of expectations, and management said the consumer spending trend in the non-essential goods category was weak. The retailer's troubled performance has raised widespread concerns about the health of American consumers.

Outfitters$Urban Outfitters (URBN.US)$Stock prices have risen, and the company's revenue and profit for the most recent quarter have exceeded expectations.

house builder$Toll Brothers (TOL.US)$The results surpassed analysts' expectations, and the annual housing delivery guidelines were raised.

$NVIDIA (NVDA.US)$The first fiscal quarter results will be released after the close of trading on Wednesday EST. Analysts expect the chipmaker to submit another strong quarterly results report. According to data from the London Stock Exchange (LSEG), the market generally estimates that the company's profit and revenue will increase by 400% and 240% year over year.

Investors will pay close attention to Nvidia's earnings report to find clues about whether the tech stock rebound will continue this year.

According to Wall Street estimates, the company expects revenue to increase by 243%, but the stock price has risen 90% so far this year, which means it may be difficult for the company to meet extremely high expectations.

As Nvidia's influence on the wider market continues to grow, Nvidia's earnings will provide the latest test for the US stock market's rebound. Since this year, the US stock market has pushed indices to record highs.

Since Nvidia's chips are the gold standard in the field of artificial intelligence, its performance is widely regarded as a barometer of the emerging AI industry. The development of this industry has stimulated investors' enthusiasm and helped drive the bull market in the US stock market.

Deutsche Bank analysts said: “This is a critical event. It may seem strange for the market to focus on a company's performance, but in recent quarters, the company's earnings release has become one of the most important events on the macroeconomic calendar.”

On Tuesday, mainly technology stocks$Nasdaq Composite Index (.IXIC.US)$At a record high, the index has risen 12% so far this year.

Traders will also keep an eye on the latest Federal Open Market Committee (FOMC) meeting minutes, as well as the April second-hand housing sales contract report.

The Federal Reserve will release the minutes of its last monetary policy meeting on Wednesday.

Traders have lowered their expectations that the Federal Reserve will cut interest rates this year. Currently, they expect to cut interest rates by about 40 basis points in 2024, compared to 50 basis points last week. The minutes of the Federal Reserve's last policy meeting, scheduled to be released later on Wednesday, may provide more clues to understanding the thoughts of interest rate makers.

The minutes of the meeting should confirm that the Federal Reserve's next move to lower interest rates is still likely, but policymakers first need to have more confidence that inflation will return to a downward trend.

Federal funds futures suggest that the possibility of cutting interest rates by September is about 66%, and the rate cut this year is 43 basis points.

Allianz's chief economic adviser El-Erian believes that US Federal Reserve officials, whether traditionally considered “hawkish” or “dovish,” are clearly in agreement recently when signaling a policy of maintaining high interest rates for a longer period of time. This consistency does not guarantee that the economy and markets will run smoothly from now on, because this is a time when confidence in the judgment and effectiveness of the Federal Reserve has shaken.

In fact, three risks stand out, El-Erian said. The first risk relates to the Federal Reserve's “data-dependent” policy approach. In a world full of uncertainties, this passive approach is problematic. The second risk is that more and more companies are concerned about weak consumer demand. The third risk is that the Federal Reserve's policy signals are calibrated by an outdated 2% inflation target; the current 2% target is probably too low.

Two Federal Reserve officials yesterday reiterated that interest rates will remain high for a longer period of time, stressing the need to be patient as the Federal Reserve waits for more evidence that inflation is falling.

Cleveland Fed President Loretta Mester (Loretta Mester) said at a symposium hosted by Atlanta Federal Reserve President Raphael Bostic (Raphael Bostic) on Tuesday that she hopes to see “several months of inflation data seem to be declining” before cutting interest rates.

Boston Federal Reserve Governor Susan Collins (Susan Collins) said on Tuesday that she would like to see more evidence that price pressure is moving towards the Fed's 2% target. “I think this is a time that requires patience. I think the data is very complicated.”

Individual stocks in focus

Star tech stocks had mixed ups and downs, with Tesla falling more than 2%, and Nvidia and Google falling more than 1%.

Most popular Chinese securities fell, with Ali and NIO falling nearly 2%, and rising nearly 6% after Pinduo's performance.

In terms of individual stocks,$Tesla (TSLA.US)$It fell more than 2%. In April, 13,951 vehicles were registered in Europe, down 2.3% year on year, to a 15-month low.

$Taiwan Semiconductor (TSM.US)$Up 1.6%, it has begun using its Info_SOW technology to produce Tesla Dojo AI training modules, with the goal of increasing computing power by 40 times by 2027.

$PDD Holdings (PDD.US)$Up nearly 6%, Q1 revenue increased 131% year over year to 86.81 billion yuan, and adjusted net profit of 30.60 billion yuan, respectively exceeding market expectations.

$NVIDIA (NVDA.US)$The decline was over 1%. Nvidia, the AI chip giant named “Earth's most important stock” by Wall Street firm Goldman Sachs, will announce the company's performance data for the first fiscal quarter of fiscal year 2025 (ending April 28, 2024) and the results outlook for the next fiscal quarter after the closing of the market on Wednesday EST, and will hold a performance conference call at around 5 a.m.

edit/emily