In an upcoming day in the European and global markets, investors will be closely watching two major developments. Firstly, Nvidia’s earnings report and accompanying commentary on AI will play a significant role in determining whether the Nasdaq continues to surge to all-time highs or experiences a sharp pullback. The hype around AI has boosted the Nasdaq by over 12% this year, with the SE Semiconductor Index also rising by an impressive 21.5%. Nvidia’s options point towards potential volatility ahead, with a swing of 8.7% in either direction expected, equivalent to $200 billion in market cap.
Additionally, global investors will be focusing on the release of the Federal Reserve’s minutes from its recent policy meeting. Despite the meeting occurring before the US CPI downside surprise last week, the minutes will be carefully analyzed for insights into the future path of monetary policy. Officials from the Fed have been cautious about inflation risks, with Governor Waller, Vice Chairman of Supervision Barr, and several regional heads echoing the need for patience. Chicago Fed chief Goolsbee will address the public today.
Currency markets have seen slight fluctuations, with the dollar edging up against its rivals. The pound, however, has displayed resilience and hit a two-month high on Tuesday. The UK CPI data release today will be crucial, impacting the likelihood of a rate cut in June. The market’s perception of future cuts has been mixed, with Governor Bailey suggesting larger cuts may be necessary, while the chief economist Pill disagrees and warns against betting too heavily on a June cut. Lt. Governor Breeden will participate in a discussion today, with Pill scheduled to speak on Friday.
Key events for Wednesday include the UK CPI, PPI, and RPI data for April, the release of the FOMC minutes from the April meeting, and Nvidia’s earnings report after the market closes.
Overall, Wednesday is anticipated to be a pivotal day for European and global markets, with Nvidia’s earnings report, the Federal Reserve’s minutes, and UK data releases set to shape investor sentiment and market direction. The volatility in tech stocks, ongoing inflation concerns, and the possibility of future rate cuts will be closely monitored by stakeholders.
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https://finance.yahoo.com/news/morning-bid-nvidia-vigil-almost-043220045.html