Morning Brief Nvidia earnings test AI boom, Target cuts outlook, Summers quits OpenAI board
US stocks look to snap a four-day losing streak after the S&P 500 (^GSPC) logged its longest slide since August and is now on track for its worst November since 2008. All the major averages — including the Dow (^DJI), Nasdaq 100 (^NDX), Russell 2000 (^RUT), and Philadelphia Semiconductor Index (^SOX) — have slipped below their 50-day moving averages, while the VIX (^VIX) climbs as volatility returns. The big pivot comes after the close when Nvidia (NVDA) reports; options pricing implies roughly a 7% move in either direction and analysts warn the stock faces a “catch-22” where even a beat-and-raise could fuel fresh AI bubble fears. Investors will listen closely for updates on Blackwell and Vera Rubin chips, hyperscaler demand from Microsoft (MSFT), Alphabet (GOOG), and Amazon (AMZN), and how rising competition from AMD (AMD) shapes the outlook.
On the consumer front, Target (TGT) cut the top end of its profit outlook and reiterated expectations for a low single-digit sales decline in the all-important holiday quarter as “choiceful” shoppers stretch budgets and trade down, even as it leans into a new partnership with OpenAI to power conversational shopping inside ChatGPT. Lowe’s (LOW) beat profit estimates, raised its full-year sales guidance, and posted double-digit online and pro customer growth, offering a more upbeat contrast to Home Depot’s (HD) cautious outlook. In corporate moves, former Treasury secretary Larry Summers resigned from OpenAI’s board following the release of emails with Jeffrey Epstein, while Adobe (ADBE) agreed to buy marketing software firm SEMrush in a $1.9 billion deal, TJX (TJX) rallied on strong results and raised guidance, and Unity Software (U) surged on a new collaboration with Epic Games to bring Unity-built titles into Fortnite.
Takeaways:
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S&P 500 and other major indexes break below 50-day moving averages as volatility picks up
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Nvidia earnings seen as a key AI stress test, with options pricing a ~$320B market cap swing
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Target trims outlook and warns of soft holiday sales while launching OpenAI-powered shopping inside ChatGPT
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Lowe’s raises sales guidance and leans on pro and online strength; Home Depot stays cautious on housing
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Larry Summers steps down from OpenAI’s board; Adobe buys SEMrush, TJX and Unity jump on earnings and deal news
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