Stocks mostly up as traders eye Nvidia
Published: 03:08 PM,Aug 28,2024 | EDITED : 07:08 PM,Aug 28,2024
Traders are biding their time ahead of the release of key figures, including Nvidia's earnings and US economic data (ANGELA WEISS)
Paris: European and Asian stock markets mostly rose on Wednesday as investors eagerly awaited the latest earnings results from US chip giant Nvidia, a bellwether for the tech sector.
Traders are also anticipating key US economic data due later this week, which could provide clues about the magnitude of an expected interest rate cut next month. However, all eyes are on Nvidia’s second-quarter results, set to be released after US markets close on Wednesday.
'The expectations for Nvidia's Q2 results are sky-high,' said Swissquote Bank analyst Ipek Ozkardeskaya.
London's FTSE 100 index was down in early afternoon trading, but Paris and Frankfurt markets were up. In Asia, Tokyo finished higher while Hong Kong saw a decline.
Ozkardeskaya highlighted Nvidia's significant impact on the broad-based S&P 500 index, noting that it has accounted for a third of the index's gains this year. 'So the company's earnings announcement day is naturally a big day for the market,' she said.
The market expects Nvidia to post sales between $27 billion and $32 billion, more than doubling from a year ago, Ozkardeskaya added. However, analysts have also cautioned that markets could face turbulence if Nvidia misses these forecasts.
'This is the one that could either lift all boats or sink the entire fleet,' said analyst Stephen Innes in his *Dark Side Of The Boom* newsletter. 'Nvidia's influence is undeniable, making it nearly impossible to take your eyes off it.' Nvidia has seen its profits soar due to high demand for its powerful GPU chips, which have driven advancements in artificial intelligence. This success has pushed its market valuation beyond the $3 trillion mark.
Investors are also awaiting the release of US economic growth data on Thursday, along with the Federal Reserve's preferred gauge of inflation on Friday, followed by jobs figures next week.
Last week, Fed Chair Jerome Powell indicated that the central bank is prepared to cut rates, which were previously raised to a 23-year high in an effort to combat inflation. However, he did not specify the size of the potential cut. The Fed's next rate decision will be made at its September 17-18 meeting. -- AFP
Traders are also anticipating key US economic data due later this week, which could provide clues about the magnitude of an expected interest rate cut next month. However, all eyes are on Nvidia’s second-quarter results, set to be released after US markets close on Wednesday.
'The expectations for Nvidia's Q2 results are sky-high,' said Swissquote Bank analyst Ipek Ozkardeskaya.
London's FTSE 100 index was down in early afternoon trading, but Paris and Frankfurt markets were up. In Asia, Tokyo finished higher while Hong Kong saw a decline.
Ozkardeskaya highlighted Nvidia's significant impact on the broad-based S&P 500 index, noting that it has accounted for a third of the index's gains this year. 'So the company's earnings announcement day is naturally a big day for the market,' she said.
The market expects Nvidia to post sales between $27 billion and $32 billion, more than doubling from a year ago, Ozkardeskaya added. However, analysts have also cautioned that markets could face turbulence if Nvidia misses these forecasts.
'This is the one that could either lift all boats or sink the entire fleet,' said analyst Stephen Innes in his *Dark Side Of The Boom* newsletter. 'Nvidia's influence is undeniable, making it nearly impossible to take your eyes off it.' Nvidia has seen its profits soar due to high demand for its powerful GPU chips, which have driven advancements in artificial intelligence. This success has pushed its market valuation beyond the $3 trillion mark.
Investors are also awaiting the release of US economic growth data on Thursday, along with the Federal Reserve's preferred gauge of inflation on Friday, followed by jobs figures next week.
Last week, Fed Chair Jerome Powell indicated that the central bank is prepared to cut rates, which were previously raised to a 23-year high in an effort to combat inflation. However, he did not specify the size of the potential cut. The Fed's next rate decision will be made at its September 17-18 meeting. -- AFP