Morning update: Nvidia excels after Fed announcement, tensions rise in Taiwan and UK election polls released

In the latest analysis of the upcoming day in US and global markets by journalist Mike Dolan, Nvidia’s strong quarterly earnings led to a surge in Wall Street stock futures on Thursday. Despite Federal Reserve meeting minutes, military tensions over Taiwan, and news of a UK election in July, Nvidia’s impressive performance in the field of artificial intelligence continued to drive its shares higher. With a 7% increase and a forecast of $28 billion in revenue for the second quarter, Nvidia’s stock values soared even further with a 10-for-1 stock split announcement.

This positive news from Nvidia helped lift S&P500 futures, which were up about 0.5% before the opening bell on Thursday, along with Nasdaq 100 futures which saw a nearly 1% increase. Wall Street’s upward trajectory to new record levels has led to a decrease in implied volatility in stocks, with the VIX fear index falling to its lowest level since November 2019.

Despite some hawkish sentiments within the Federal Reserve, US Treasury market volatility indicators have been declining, signaling that interest rates may remain unchanged for the foreseeable future. Goldman Sachs chief David Solomon even predicts no rate cuts for the rest of the year. As markets await weekly unemployment numbers and business surveys for May, Treasury yields have only seen modest increases.

In the UK, recent inflation data has dashed hopes of a Bank of England rate cut in June, with the possibility of a move in August now uncertain due to the surprise announcement of a July 4 election. While the Labor Party is expected to win, the increased volatility of the pound sterling reflects uncertainty surrounding the political landscape.

In other global news, May euro zone business surveys showed positive growth while UK activity slowed. Chinese stocks suffered losses amidst geopolitical tensions as the Chinese military conducted exercises near Taiwan. US Treasury Secretary Janet Yellen expressed concerns about China’s industrial overcapacity and the potential impact on global economies during a G7 finance ministers meeting in Italy.

Key articles impacting US markets on Thursday include weekly jobless claims, global business surveys, new home sales data, G7 meetings, and US corporate earnings reports. Overall, market participants are closely monitoring economic indicators and geopolitical developments for further guidance on market trends.

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https://finance.yahoo.com/news/morning-bid-nvidia-aces-fed-100312177.html