Before the market opens, Nvidia (NASDAQ:NVDA) shares fell 3% after reporting its latest quarterly results. Given the fact that it has one of the greatest individual influences on movement S&P500here’s what I think might happen for the index by the end of the year.

Details behind the results

The move so far this morning (November 21) really interests me for a few reasons. Nvidia’s results exceeded market expectations. Revenue came in at $35.08 billion, which was solid compared to the $33.16 billion forecast. Even in the final analysis, adjusted earnings per share exceeded the expected $0.75, reaching $0.80. For the record, this was the eighth consecutive quarter in which Nvidia beat Wall Street forecasts.

Despite such good results, the company’s shares immediately fell. I think it can be boiled down to the fact that the rate of growth is starting to ponderous down. For example, year-over-year revenue growth was 94%. This may seem unbelievable, but let’s look at things from a different perspective. Revenue growth in the previous quarter compared to the comparable period of 2023 was 122%. In the previous quarter the augment was 262% and in the previous quarter it was 265%.

So the slowdown in growth is a point that has made investors stop and think. Another reason for stock price reaction is investor sentiment. While the results were great, investors clearly expected something even more amazing. In other words, the bar has been set so high that people will unfortunately be disappointed with almost everything that is released!

Implications for the index

Nvidia shares are up 190% in the last year. Given the size of the company, this certainly contributed to the 30% gain in the S&P 500 Index over the same period.

I think in the low term we may see a decrease in water levels in the tread. The move after Nvidia’s earnings will likely cause investors to pause and take a breather after the rally. Does anything need to be recalibrated? Is the price-to-earnings ratio excessive? Will the company be able to beat expectations next year? Here are some likely points to consider.

From my point of view, I do not see this as the beginning of a significant correction in the S&P 500 or Nvidia shares. However, I believe that this will ponderous down the index and cause significant increases at the end of the year. This relates to the fact that some traders and traders may want to reduce their risk until Thanksgiving and some would rather sit on their hands until January.

Looking ahead to 2025, I think the S&P 500 will continue to climb, but other sectors will be the main drivers. For example, with a up-to-date presidency, I think US stocks will like it Tesla it will work better. Based on this, I’m not going to buy Nvidia now.