New York stock market mixed as it awaits NVIDIA earnings

Long-term Treasury yields rise day after day on mid- to long-term inflation concerns

NVIDIA's stock is expected to move up or down about 6% after the announcement

Ahead of NVIDIA's earnings announcement, the biggest event for the U.S. stock market this week, New York stocks opened mixed on the 27th (local time).

At 10 a.m. Eastern, the S&P500 index was trading around 6.468 points, roughly unchanged from the previous day. The tech-heavy Nasdaq fell 0.1%. The Dow Jones Industrial Average rose 0.2%.

NVIDIA, which reports July-end quarter results after the close, was trading at $180, down 0.8% in the early session.

NVIDIA's earnings are expected to determine the direction of the New York market tomorrow.

According to FactSet, NVIDIA beat Wall Street estimates in 11 of the last 12 quarterly reports, but in four of those cases the stock weakened after the earnings announcement.

NVIDIA, with a market capitalization of $4.4 trillion, accounts for 8.1% of the S&P500 index. According to Bloomberg, options traders expect NVIDIA's stock to move about 6% in either direction on the 28th, the day after the earnings announcement.

Clark Bellin of Bellwether Wealth pointed out, "NVIDIA is the ultimate gauge of the AI story," and said the market is already highly valued on expectations of NVIDIA's strong results. He added that with Wall Street effectively pricing in a Fed rate cut in September, NVIDIA is the next hurdle the market must clear to keep the rally going.

Despite President Trump's unprecedented move to dismiss Federal Reserve Board Governor Lisa Cook, the stock market largely reacted quietly except for long-term Treasuries, which moved significantly.T

With prevailing concerns that Trump taking control of the Fed would raise mid- to long-term inflation, long-term Treasury prices continued to fall from the previous day. Bond prices and yields move in opposite directions.

The 10-year Treasury yield rose 2.5 basis points (1 bp = 0.01%) to 4.251%, while the 20-year and 30-year yields climbed more than 4 bp to 4.901% and 4.953%, respectively.

By contrast, the 2-year Treasury yield, which follows policy rate expectations, fell 2 bp to 3.652% as markets priced in expectations of a September rate cut.

The dollar strengthened against major currencies, with the Bloomberg Dollar Spot Index rising 0.3%. The Japanese yen, which has been weak against the dollar, fell 0.5% on the day to 148.07 per dollar.

Bitcoin fell 0.2% to $111,120.36, while ether was nearly unchanged at $4,588.6.

Contributing reporter Jeong-A Kim kja@hankyung.com