As investors' concerns grew ahead of NVIDIA's earnings announcement, the three major stock indices on the New York Stock Exchange closed lower on the 28th (Eastern Daylight Time).
On that day, the Dow Jones Industrial Average closed down 244.95 points (0.58%) at 42,098.70 on the New York Stock Exchange (NYSE). The Standard and Poor's (S&P) 500 index fell by 32.99 points (0.56%) to 5,888.55, and the NASDAQ Composite index finished down 98.23 points (0.51%) at 19,100.92.
On that day, investors' primary interest was NVIDIA's first-quarter earnings. Since NVIDIA's earnings were to be released after the market closed, investors remained cautious. The first-quarter results released after the market closed slightly exceeded market expectations, with revenue reaching $44.1 billion and earnings per share (EPS) at $0.96.
The significant discussion of stagflation risks in the May Federal Open Market Committee (FOMC) minutes also impacted the market. According to the minutes, FOMC Commissioners expressed a stronger concern regarding stagflation risks compared to previous assessments, and the Federal Reserve staff appeared to present an economic outlook weighing towards recession.
The Federal Reserve staff assessed, "The risks to real activity have tilted to the downside," and noted that "The likelihood of entering a recession is nearly as great as the baseline forecast."