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Nvidia Earnings Data to Drive Market Sentiment
upcoming earnings after the market close today has the potential to greatly impact sentiment for the US markets, particularly if it misses estimates for the first time in seven quarters. Following this, investors will shift their focus to Friday’s PCE inflation report, a key event in this week’s economic calendar, to assess potential Fed policy moves. Additionally, Eurozone inflation data for August, set to be released on Friday, will play a crucial role in shaping the ECB’s interest rate decision for September.
Will Nvidia Beat Estimates?
Nvidia shares have surged over 160% in 2024, but the big question is whether they can continue to exceed expectations and if demand for AI products remains robust. Any signs of weakening AI demand or a slight miss could hurt share prices and the broader market. The AI giant is expected to report earnings per share of $0.65 and revenue of $28.7 billion.
*As of 08/27/2024 S&P 500 weekly movers
USD Weakness
The US dollar has dropped over 3% this month, reaching a 13-month low of 100.50. This decline is largely due to the reevaluation of potential rate cuts, with markets pricing in a 65.5% chance of a 25 basis point cut and a 34.5% chance of a 50 basis point cut in September. Meanwhile, the EUR/USD has risen more than 2.80% this month but is currently facing technical resistance at the 1.1200 level and has dipped by 0.50% in today's session.
icon IndDo Jones Soars to Record HigUS30 or Dow Jones hit a record high earlier this week of 41,482 points, meanwhile the US 500 and NAS 100 have drifted lower for this week, as this could signal rotation out of tech into other sectors of the market. However, markets will pay close attention towards Friday’s US PCE inflation data for July which could influence the decision on potential interest rate cuts in september.
