Tom Westbrook gives us a glimpse into what to expect in European and global markets for the day ahead.
All eyes are on Nvidia as they prepare to release their earnings report today. Despite expectations of doubling second-quarter revenue, investors may be left wanting more from the tech giant known for its market-moving performances.
Just two years ago, Nvidia had a market value of around $390 billion. Fast forward to today, it’s sitting at nearly $3.2 trillion, briefly claiming the title of the most valuable company in the world in June. Their AI-powered chips have been driving this incredible growth.
With Nvidia’s earnings set to be unveiled after the U.S. market closes, the entire market could be in for a shake-up. Asian markets were quiet, and European futures are showing little movement in anticipation of the report.
While Europe’s economic calendar is relatively quiet, all eyes are on Nvidia’s results. Options traders are bracing for a potential 10% swing in Nvidia’s stock, which could translate to over $300 billion in market value – possibly the largest market move ever seen on an earnings report.
Aside from Nvidia, sterling remains strong near a 2-1/2 year high, benefiting from a weakened dollar. Traders are expecting significant U.S. interest rate cuts this year compared to Britain.
As we eagerly await Nvidia’s report, fans of Oasis are in for a treat with news of planned reunion shows next year. The band signed their first record deal just weeks after Nvidia’s inception back in 1993.
Key market influencers for Wednesday include Nvidia’s earnings and economic data from the Eurozone and France.
Written by Tom Westbrook; Edited by Edmund Klamann