TradingKey - The three major U.S. stock indices edged higher in Wednesday pre-market trading ET as the market awaited Nvidia’s (NVDA) earnings report due after the close. All three major indices closed lower in the previous session, while long-term government bond yields remained elevated globally.

TradingKey - On May 20, Eastern Time, NVIDIA’s (NVDA) Q1 FY2027 earnings report, scheduled for release after the bell, has become the market focus. The options market has already reacted; according to options positioning data, the market anticipates a potential price swing of approximately 6.5% for NVIDIA on the day following the announcement.

TradingKey - Despite the recent sharp correction in the semiconductor sector and a cumulative decline of nearly 14% in Micron Technology (MU) shares over the past five trading days, Wall Street analysts remain optimistic about its outlook. In a newly released research report, Citigroup (C) analyst Atif Malik significantly raised Micron's price target from $425 to $840, nearly doubling the figure, and reaffirmed a "Buy" rating.

U.S. stocks retreated as surging Treasury yields and geopolitical tensions pressured markets. Meanwhile, global focus shifted to key international diplomacy, U.S.-Iran negotiations, Google's major AI announcements, and highly anticipated previews of Nvidia’s upcoming corporate earnings report.

TradingKey - NVIDIA (NVDA.US) will release its first quarter fiscal 2027 financial results after the market close on May 20, Eastern Time. Market expectations project revenue at approximately $78.9 billion, representing a year-on-year increase of about 79%, with adjusted earnings per share (EPS) of approximately $1.77.

TradingKey - NVIDIA (NVDA) will release its earnings report after the U.S. market close on Wednesday, May 20, a report that will serve as the most critical stress test for the AI trade. However, the market is not betting entirely on the stock trending higher. Recent signals from the options market indicate that while investors are placing bullish bets, they are also purchasing a significant volume of protective positions, suggesting the market is bracing for heightened volatility. Options analytics firm SpotGamma noted in a recent report that the implied move for NVIDIA's earnings has reached 6%.
