Nvidia's financial report exceeds expectations, stock market returns to an upward trend📢
After a couple weeks of selling pressures, equities were obviously happy to be obliged with the risk-on move, with S&P rallying over 1% led by gains in tech and real estate names. The former was already rallying well ahead of the Nvidia earnings, which blew past even the lofty estimates in the afterhours, and helping to extend the index gains by another 0.8% as of the time of writing.
Nvidia's results came in well above estimates, thanks to an exceptionally strong performance out of its emerging data center business, with management still presenting a rosy outlook for AI-led chip demand going forward. Shares are up 7% in the after-hours, with the stock joining the hallowed ranks of Apple and Amazon as being one of the most important bellewether names in the entire SPX universe.
Technically speaking, the SPX appears to have made a successful break above its August downward channel, suggesting a further move in the risk-on move along with the on-going squeeze in bond prices. Markets will be focused on Chairman Powell's speech tomorrow morning, and in particular on how aggressive he is in verbally jousting terminal rates higher.
