Journalist Mike Dolan provides a market update for the coming day in both US and global markets. Despite ongoing concerns about inflation and interest rates, the major indexes are not expected to see much movement on Wednesday. Nvidia’s strong earnings performance is expected to have an impact on the market, as the company’s stock price continues to rise significantly this year.
Nvidia now holds a significant weighting in key indexes such as the S&P 500, Nasdaq 100, and VanEck Semiconductor trading fund, reflecting the importance of the company in the market, especially in the context of artificial intelligence.
While Nvidia’s performance is a positive factor, the macroeconomic environment has been mixed, with different inflation scenarios emerging globally. Recent data from Canada showed disinflation, leading to speculation of interest rate cuts there. However, British headline inflation missed forecasts, dampening expectations of a rate move by the Bank of England.
The Reserve Bank of New Zealand maintained its policy rates but hinted at a possible increase in the future. With the Federal Reserve set to release meeting minutes later in the day, there is little talk of a US rate cut this summer, as Fed officials emphasize the need to monitor inflation further.
Despite a drop in oil prices, US Treasury yields rose, influenced by factors such as upcoming bond auctions and April inflation data from the UK. Concerns about higher services inflation and conflicting core inflation and producer output numbers suggest the Bank of England may delay policy easing.
Elsewhere in Europe, markets were impacted by concerns about an escalation in the trade war between China and Western economies. European carmakers saw a decline, with news of potential tariff increases on imported gasoline-powered cars in China.
On Wall Street, stock futures were slightly down, with a stronger dollar and weaker global stock markets. Key articles that may impact US markets include April existing home sales data, corporate earnings reports from companies like Nvidia and Target, meeting minutes from the Federal Open Market Committee, and a US Treasury bond auction.
Overall, the market outlook for the day is uncertain, with various economic and geopolitical factors at play. Investors will be closely monitoring key data releases and earnings reports to guide their decisions.
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https://finance.yahoo.com/news/morning-bid-nvidia-nears-uk-100418536.html