NVIDIA earnings will be released after market closes on the 20th
Trump considers easing regulations on self-driving cars… Tesla ↑
International oil prices rise by nearly 2% due to heightened tensions between Russia and Russia
The three major indices of the New York Stock Exchange were mixed in the early trading range on the 18th (local time). With the ‘Trump rally’ that accelerated after the presidential election on the 5th entering a lull, investors are awaiting earnings announcements from companies including artificial intelligence (AI) superstar NVIDIA this week.
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As of 9:59 a.m. on this day in the New York stock market, the blue chip-centered Dow average was recording 43,354.35, down 0.21% from the previous trading day. The S&P 500 index, centered on large-cap stocks, is trading at 5869.62, down 0.02%, and the Nasdaq index, centered on technology stocks, is trading at 18,693.73, up 0.07%.
By stock, Tesla is surging 7%. Stock prices are soaring following a Bloomberg News report that U.S. President-elect Donald Trump is seeking to ease regulations on self-driving cars. Nvidia, which announces its earnings this week, is down 2.66% on reports that its latest AI chip, Blackwell, is experiencing server overheating problems. CVS Healthcare is rising 3.06% after news of four additional board positions was announced.
Last week, the New York stock market fell as the Trump rally subsided. The Dow average fell 1.2%, and the S&P 500 index and Nasdaq index fell 2.1% and 3.2%, respectively. Expectations for President-elect Trump’s pro-business policies pushed up the stock market, but investors took profits and gave up the gains. Jerome Powell, Chairman of the US Federal Reserve (Fed), also dampened investment sentiment by indicating on the 14th that he would not rush to cut interest rates. In addition, solid retail sales last month supported a strong economy and lowered expectations of an interest rate cut. Retail sales in October increased by 0.4% compared to the previous month, significantly exceeding expectations (0.3%).
According to FedWatch of the Chicago Mercantile Exchange (CME), the federal funds interest rate futures market today reflects a 58.4% possibility that the Fed will cut interest rates by 0.25 percentage points at the Federal Open Market Committee (FOMC) regular meeting in December. It fell from 65.3% a week ago and 76.8% a month ago. U.S. Treasury yields are also rising. The interest rate on 10-year US Treasury bonds, a global bond interest rate benchmark, is 4.46%, up 3bp (1bp=0.01%) from the previous trading day, and the interest rate on US Treasury bonds with 2-year maturity, which is sensitive to monetary policy, is moving at the previous day’s level of 4.3%.
The main catalyst that will determine the direction of the stock market this week is Nvidia’s performance, which will be announced after the market closes on the 20th. If NVIDIA announces better-than-expected performance and earnings forecasts, it is expected that the stock market, which is in a wait-and-see attitude, will be able to create an opportunity for a rebound. Wall Street is watching the demand outlook for Blackwell, Nvidia’s latest AI chip.
“Traders appear to be trying to assess the potential impact of the new Trump administration’s policies on the economy and the likelihood that the Fed will slow the pace of interest rate cuts,” said Chris Larkin, investment managing director at Morgan Stanley E-Trade. “We will move to performance, especially Nvidia’s performance, which is likely to determine the short-term momentum of the market,” he said.
In addition, Palo Alto Networks and retailers Walmart, Target, and Ross are releasing their earnings this week. According to market research firm FactSet, 93% of S&P 500 companies have reported earnings so far, three-quarters of them have exceeded expectations in earnings per share (EPS), and 61% have had sales that have exceeded expectations. .
International oil prices are strong. This is the aftermath of heightened tensions between Russia and Ukraine as the Joe Biden administration authorized Ukraine to attack the Russian mainland with missiles provided by the United States. West Texas Intermediate (WTI) is trading at $68.19 per barrel, up $1.27 (1.9%) from the previous trading day, and Brent crude oil, the global crude oil price benchmark, is trading at $72.38 per barrel, up $1.34 (1.89%).
New York = Correspondent Haeyoung Kwon roguehy@asiae.co.kr
How could potential regulatory changes by the Trump administration regarding self-driving cars impact investor sentiment toward NVIDIA and similar tech companies?
Interview with Dr. Jane Smith, a renowned tech analyst, and John Doe, a financial expert on Wall Street:
Interviewer: Today, we’re discussing the mixed sentiments being experienced in the New York Stock Exchange ahead of NVIDIA’s earnings release, and how the market is reacting to Trump’s potential moves towards easing self-driving car regulations. Joining us are Dr. Jane Smith, a renowned tech analyst, and John Doe, a financial expert on Wall Street. Good day to both of you.
Dr. Jane Smith: Thank you for having me.
John Doe: It’s a pleasure.
Interviewer: Dr. Smith, can you tell us your perspective on how the upcoming NVIDIA earnings release could impact the stock market? What factors do you think will drive investor reactions?
Dr. Jane Smith: Yes, of course. NVIDIA has been a strong performer in the market and their AI chip, Blackwell, has been one of the key drivers of their success. However, there have been some concerns about server overheating issues which caused their stock to dip slightly. Investors will be looking for reassurance that these issues have been resolved and that there is still demand for their products. Furthermore, with the Trump administration reportedly considering easing regulations on self-driving cars, there could be potential for growth in that sector as well. If NVIDIA’s earnings beat expectations and they provide positive guidance on their involvement in the self-driving car industry, we could see a surge in their stock price.
John Doe: Agreed. From a financial standpoint, I think investors will be looking for any signs of slowing demand for AI technology, as well as any indication of profitability from the self-driving car market. If Blackwell continues to experience server overheating issues, it could lead to more skepticism around NVIDIA’s growth prospects. On the other hand, if the company demonstrates strong demand for its products and potential success in the self-driving car market, we could see a significant rally.
Interviewer: Turning our attention to international oil prices, they’ve been on the rise due to tensions between Russia and Ukraine
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