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### Dow Jones Hits Another Record

The stock market saw a modest uptick as anticipation builds around Nvidia’s forthcoming earnings report. The Dow Jones Industrial Average inched up by 0.02%, marking its second consecutive record close. Meanwhile, the S&P 500 and Nasdaq Composite both rose by 0.16%. Nvidia’s stock climbed 1.5%, driven by investor excitement ahead of the company’s quarterly earnings release slated for Wednesday. On another note, the yield on the 10-year Treasury experienced a slight increase, while U.S. oil prices dipped by 2.2% amid hopes that Libya’s production halt would be short-lived.

### Nvidia: The Market’s Linchpin

Nvidia, a leading AI chipmaker, has been highly volatile recently. Its market capitalization skyrocketed ninefold since 2022, even briefly becoming the world’s most valuable public company. However, the stock subsequently plummeted nearly 30% over seven weeks, wiping out $800 billion in value. It has since rebounded to within 7% of its all-time high. With earnings expected on Wednesday, Wall Street’s eyes are glued to Nvidia’s performance, given its broader market implications. Eric Jackson from EMJ Capital emphasized the stock’s significance, stating, “If they lay an egg, it would be a major problem for the whole market.” Analysts are optimistic about an upside surprise in Nvidia’s earnings.

### Mixed Performance in Asia-Pacific Markets

Asia-Pacific markets presented a mixed bag on Wednesday. Australia’s S&P/ASX 200 dipped around 0.2% following a report showing a 3.5% year-on-year increase in July’s CPI, slightly above the anticipated 3.4%. However, there were bright spots: JD.com shares rose by approximately 1.4% after announcing a $5 billion buyback plan, and Xpeng shares surged close to 2.3% following the announcement of a new mass-market vehicle.

### Cryptocurrency Market Decline

Cryptocurrencies faced a significant downturn. Bitcoin’s price fell around 4.2%, settling at $59,412.14 according to Coin Metrics, while Ether saw a similar drop, ending at $2,478.88. Steven Lubka of Swan Bitcoin explained that the sharp decline triggered a leverage-driven liquidation, initially sparked by a substantial drop in Ethereum’s value.

### Nordstrom Exceeds Earnings Expectations

Nordstrom shares jumped over 7% in extended trading after posting earnings that surpassed Wall Street expectations. The retailer reported adjusted earnings of 96 cents per share on revenue of $3.89 billion, marking a 3.4% increase from last year. Despite the upbeat earnings report, Nordstrom issued cautious full-year guidance, projecting adjusted EPS between $1.75 and $2.05 and sales ranging from a 1% decline to 1% growth.

### Renewed Optimism Surrounding Nvidia

All eyes are on Nvidia as it prepares to release its earnings on Wednesday after U.S. markets close. While some investors worry about the sustainability of Nvidia’s momentum, Truist Securities recently raised its price target for the company.

Despite the S&P 500 nearing its record high, the PHLX Semiconductor index remains more than 14% below its all-time high, with many components in bear market territory. Nvidia has been pivotal in this year’s market rally, with its stock up by 160%, notwithstanding a recent dip. Investors are keenly awaiting the earnings report to see if Nvidia can continue its AI-driven growth story.

However, with the stock trading at 37 times its forward earnings—above the S&P 500 tech average—there are concerns about meeting high expectations and future guidance. Citi’s U.S. equity strategist Scott Chronert highlighted Nvidia’s importance to the S&P 500’s gains this year but stressed the need for ongoing evidence of AI-driven productivity gains.

Joseph Moore from Morgan Stanley acknowledged that while competitors like AMD, Broadcom, and Marvell offer viable alternatives, Nvidia’s execution remains robust. He anticipates Nvidia will maintain its market share of 90% of AI processors into 2025.

### Broader Tech Sector Under Scrutiny

The tech landscape is under intense scrutiny this week with upcoming earnings reports from Dell and Salesforce adding to the mix. August witnessed a tech sector sell-off; however, comments from Federal Reserve Chair Jerome Powell helped mitigate some losses.

Nomura analyst Naka Matsuzawa warned that stronger-than-expected tech earnings could challenge current market assumptions about rate cuts. “This week U.S. tech companies’ earnings reports will be the main focus,” he noted, suggesting that positive results could reverse some expectations for rate cuts.

Stay tuned to CNBC Daily Open for more in-depth coverage and updates on these critical market developments.