The stock market is slowing down and waiting: Nvidia is coming!

Global stock markets paused as investors awaited crucial earnings reports from chip giants like Nvidia. Amid concerns over the U.S. Federal Reserve's potential for more interest rate cuts this year, the Dow index traded sideways for two hours, while the tech-heavy Nasdaq recorded a modest gain of just 0.2%. The broader S&P 500 index, on the other hand, experienced a decline of about 0.1%.

European stock markets felt a lack of inspiration, with DAX losing 1.2% of its value. London and Paris also saw marginal declines. Major indices in Asia closed negatively due to rising tensions between China and Japan, compounded by issues in the tourism and retail sectors.

With Nvidia down 1.1%, earnings reports from U.S. retailers such as Home Depot, Target, and Walmart are also expected. These reports will showcase consumer performance and highlight the effects of President Donald Trump's international trade tariffs.

Investors are also looking to analyze the performance of the U.S. labor market in September, with data set to be released this Thursday after the longest government shutdown in U.S. history has ended.

Peter Cardillo from Spartan Capital Securities remarked, “This will be the first impression of some macro news and can provide clues about the Federal Reserve's future interest rate policy.” Cardillo further stated that for companies, “Everything depends on Nvidia; how can it turn around the negative sentiment in the artificial intelligence sector?"

The cautious atmosphere in trading floors also negatively impacted the crypto sector; Bitcoin has temporarily erased its gains for the year. The European Union has lowered its eurozone growth forecasts for 2026 due to increasing pressures from international trade and geopolitical tensions on the European economy.

Investors have re-evaluated their expectations regarding U.S. interest rate cuts and the artificial intelligence-assisted technology rally in recent weeks. As data delays continue, Kathleen Brooks, research director at XTB, noted, “As the economic outlook remains uncertain, the likelihood of the Federal Reserve avoiding monetary policy changes increases.”

Federal Reserve Chairman Jerome Powell added to the uncertainty last month by stating that he could not guarantee any interest rate cuts in December. All eyes are focused on chip giant Nvidia's earnings report this week; the world's highest-value company reached a market cap of $5 trillion last month.

Bitcoin dropped to $92,935.51 for a brief moment due to the uncertain atmosphere in trading floors, but managed to recover slightly, rising above $94,000. The cryptocurrency had reached a record level of $126,251 on October 6, following Trump's pledges to ease regulations in the crypto sector.

Key figures around 1650 GMT:

• New York - Dow: Fluctuating at 47,141.61 points YET
• New York - S&P 500: Up 0.2% to 6,745.31
• New York - Nasdaq Composite: Up 0.2% to 22,962.65
• London - FTSE 100: Closed down 0.2% at 9,675.43 points
• Paris - CAC 40: Closed down 0.6% at 8,119.02
• Frankfurt - DAX: Closed down 1.2% at 23,590.52
• Tokyo - Nikkei 225: Closed down 0.1% at 50,323.91
• Hong Kong - Hang Seng Index: Closed down 0.7% at 26,384.28
• Shanghai - Composite: Closed down 0.5% at 3,972.03

Exchange Rates:
Dollar/Yen: Rising at 155.19 yen since Friday
Euro/Dollar: Falling at $1.1598
Pound/Dollar: Rising at $1.3174
Euro/Pound: Falling at 88.01 pence

Oil:
West Texas Intermediate: Flat at $60.11
Brent North Sea Crude: Flat at $64.43