Market Braces for Nvidia Earnings
London: 20 May 2024 (TraderMade): This week promises to be a rollercoaster for market participants, with key events impacting the direction of the market. Here's what's on tap:
Nvidia Earnings in Focus
All eyes are on AI chip giant Nvidia (NVDA) as it reports its first-quarter earnings on Wednesday, 22 May 2024. Analysts anticipate strong results fueled by surging demand for its GPUs used in artificial intelligence and gaming.
However, some whispers of a potential slowdown have investors on edge. Will Nvidia's performance solidify the recent market rally or trigger a tech stock correction?
Fed Minutes and Rate Cut Hopes
Investors will also examine the Federal Reserve's latest policy meeting minutes, released Wednesday. While a rate cut is unlikely in the near future, any hints about the Fed's future monetary policy stance could influence stock prices.
Dovish language hinting at a potential pause in rate hikes could spark renewed optimism, while hawkish tones dampen the market's enthusiasm.
US Indices Eye Weekly Gains
Last week, major US indices like the S&P 500 (SPX500) surged 1.77%, and the Dow Jones Industrial Average (USA30) soared 1.34% to notch up impressive gains.
However, this week will be a test of their resilience. Can the indices sustain their upward momentum, or will profit-taking and earnings expectations lead to a pullback? Stay tuned!
