The three major indices of the US stock market collectively weakened, $S&P 500 Index (.SPX.US)$ down 0.67%, $Nasdaq Composite Index (.IXIC.US)$ down 1.01%, $Dow Jones Industrial Average (.DJI.US)$ down 0.25%.

Nvidia will announce its financial report after the market closes on Wednesday. Given that its market cap has surpassed 3.6 trillion dollars, making it the largest company by market cap in the world, its financial report may be more important than certain economic data and set the tone for the future movements of the S&P 500 index and the Nasdaq composite index.

As the largest publicly traded company by market cap globally, Nvidia's stock price has continued to soar this year, thanks to the explosive growth of AI in the technology and other fields. As of Tuesday local time, Nvidia's stock price has risen 196% year-to-date, easily outpacing any chip manufacturer competitor. In contrast, its closest competitor AMD's stock price has fallen over 5% this year, while Intel's stock price, which is struggling to turn a profit, has plummeted nearly 52%.

Investors will focus on Nvidia's detailed description of the demand for the Blackwell AI chip. This chip has now begun full-scale production, and Nvidia CEO Jensen Huang mentioned last month that the demand for Blackwell is 'crazy,' with 'every customer wanting to get the chip as soon as possible, and everyone hoping to receive more products.'

Bank of America believes that Nvidia's financial report will have a greater impact on the S&P index than inflation and employment data, even surpassing the Federal Reserve's meeting.

US analyst Gonzalo Asis urged clients to hedge against potential impacts in case the financial report results are disappointing. He stated: 'The market took a slight breather after the post-election rally last week, and we believe Nvidia's financial report will determine the market's recent movements.'

Barclays strategists also believe that Nvidia's financial report could be the most important market catalyst for the remainder of the year, with a greater impact than the Federal Reserve's December meeting.

Nvidia's financial report is viewed as a potential catalyst that may accelerate the rise of US stocks for the remainder of the year. After the results of the US elections were revealed in early November, US stocks surged significantly, with the three major indices hitting new highs. Wall Street expects that the proposed tax cuts by Trump will drive significant growth in US stocks and corporate earnings in the coming years.

In the past week, the stock market faced difficulties as Federal Reserve Chair Powell hinted that the central bank is not in a hurry to cut interest rates. This Tuesday, the increasingly tense geopolitical situation between Russia and Ukraine also caused panic in the markets.

Chris Senyek, an analyst from Wolfe Research institutions, stated: "Like most investors, we will closely monitor NVIDIA's earnings report today, especially any clues regarding future AI spending. We believe that any negative news or disappointing spending trends could be one of the major risks that might delay or even reverse the end-of-year stock market melt-up in the USA."

The European Central Bank issued a warning on Wednesday regarding a "bubble" in AI-related stocks. The bank stated: "There are signs that investors may be underestimating the probability and extent of adverse scenarios, as indicated by the record-low stock risk premium and the relatively compressed corporate bond spreads in Europe and the USA."

The ECB pointed out, "In recent years, the market cap and earnings concentration of a few U.S. companies have significantly increased, raising concerns about the possibility of a price bubble in AI-related assets."

Several Federal Reserve officials, including Fed Governor Lisa Cook and Michelle Bowman, as well as Boston Fed President Susan Collins, will speak on Wednesday.

The market is also paying attention to the latest developments in the Russia-Ukraine conflict. According to Global Network, in response to U.S. media reports that President Biden has authorized Ukrainian forces to use U.S.-made long-range missiles to strike targets deep within Russia, Turkish President Erdogan stated on the 20th that this move by the U.S. is a "big mistake" and could push the world to the brink of "large-scale war."

Previously, Biden authorized Ukrainian forces to use the U.S.-supplied Army Tactical Missile System (ATACMS) to strike deep targets within Russia, marking a "significant shift" in U.S. policy on the Russia-Ukraine conflict. Russian presidential spokesperson Peskov stated on the 18th that if the media reports are confirmed, "this will undoubtedly lead to a new escalation of tensions."

Focus stocks

Most growth tech stocks fell.$NVIDIA (NVDA.US)$ 、 $Amazon (AMZN.US)$ Fell more than 2%. $Tesla (TSLA.US)$ dropping nearly 2%, $Apple (AAPL.US)$ And follow the decline.

Bitcoin has risen above $94,000, setting a new historical high, and the concept stocks related to cryptos have generally increased. $Bakkt Holdings (BKKT.US)$up more than 9%, $MicroStrategy (MSTR.US)$ Rise more than 7%, $MARA Holdings (MARA.US)$ Up more than 3%.

The performance of Chinese concept stocks has varied. $Full Truck Alliance (YMM.US)$ Up nearly 8%, $Trip.com (TCOM.US)$ Up more than 3%, Wheaton Precious Metals (WPM.US) fell more than 13%, with silver falling more than 4%, and others falling more than 2%. $XPeng (XPEV.US)$ rose more than 1%, $PDD Holdings (PDD.US)$ Fell more than 3%.

$Target (TGT.US)$ Fell over 21%, the third-quarter financial report did not meet expectations, and the full-year profit guidance was lowered.

$Kingsoft Cloud (KC.US)$ Rose over 32%, total revenue in Q3 increased 16% year-on-year.

$ZIM Integrated Shipping (ZIM.US)$ Increased over 7%, the company's Q3 revenue was 2.77 billion USD, a year-on-year increase of 117%, and the full-year performance guidance was raised.

Editor/Somer