European equities inched higher and US stock futures recovered from earlier declines as investors analyzed Nvidia Corp.’s latest earnings report and anticipated crucial economic data later this week. The Stoxx Europe 600 index increased by 0.3%, buoyed by gains in technology stocks. In contrast, Nasdaq 100 futures dropped 0.1% following a more than 1% decline in the index on Wednesday, while S&P 500 futures remained relatively unchanged. Nvidia’s shares fell over 8% in after-hours trading.
Nvidia’s disappointing sales forecast has raised concerns about a potential cooling of the AI-driven enthusiasm that has significantly boosted tech stocks this year. Despite the weaker guidance, Nvidia’s revenue more than doubled to $30 billion for the fiscal second quarter, indicating continued robust demand.
As the earnings season concludes, market attention shifts back to broader economic indicators. The Federal Reserve’s preferred inflation measure, set to be released on Thursday, is expected to influence expectations regarding future monetary policy adjustments.
Gaël Combes, head of equities at Banque Syz & Co., highlighted that not all semiconductor companies benefit equally from the AI trend, noting that some are heavily involved in sectors such as handsets, automotive, or industrials. He cautioned that an economic slowdown remains a risk.
In the bond market, the yield on 10-year US Treasury notes held steady at 3.84% after a slight increase of one basis point in the previous session. The dollar slightly depreciated following a broad-based gain, driven by investor rebalancing of portfolios.
Market participants are also considering the potential for US interest rate cuts. Federal Reserve Bank of Atlanta President Raphael Bostic suggested it might be time to lower rates, though he indicated further data would be necessary before making a decision next month.
In commodities, oil prices stabilized following a two-day decline, with stock market losses counterbalancing reductions in US oil inventories and supply disruptions in Libya. Gold remained just below its record high, on track for a monthly gain.
Upcoming Key Economic Events:
1.Eurozone consumer confidence (Thursday)
2.US GDP and initial jobless claims (Thursday)
3.Federal Reserve’s Raphael Bostic speech (Thursday)
4.Japan unemployment, Tokyo CPI, industrial production, retail sales (Friday)
5.Eurozone CPI and unemployment (Friday)
6.US personal income, spending, PCE; consumer sentiment (Friday)
Market Overview:
Stocks
1.Stoxx Europe 600: +0.3%
2.S&P 500 futures: little changed
3.Nasdaq 100 futures: -0.2%
4.Dow Jones Industrial Average futures: +0.4%
5.MSCI Asia Pacific Index: -0.1%
6.MSCI Emerging Markets Index: -0.2%
Currencies
1.Bloomberg Dollar Spot Index: -0.2%
2.Euro: $1.1127 (little changed)
3.Japanese Yen: 144.68 per dollar (little changed)
4.Offshore Yuan: +0.3% to 7.1088 per dollar
5.British Pound: +0.2% to $1.3222
Cryptocurrencies
1.Bitcoin: +0.4% to $59,571.01
2.Ether: +0.4% to $2,547.13
Bonds
1.10-year US Treasuries yield: 3.84% (little changed)
2.Germany’s 10-year yield: +2 basis points to 2.28%
3.Britain’s 10-year yield: +1 basis point to 4.01%
Commodities
1.Brent Crude: little changed
2.Spot Gold: +0.5% to $2,517.73 per ounce
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How to Short Currency Futures?