US and global stock averages hitting record levels, with Nvidia surging again

Macroeconomic/ geopolitical developments

• Stock averages dipped and surge last pre- and post-Nvidia results. The anticipation surrounding Nvidia’s high-stakes earnings report created turbulence in the US stock market, with futures dipping ahead of the semiconductor firm’s quarterly results. However, stock markets saw a dramatic turnaround following Nvidia’s blockbuster earnings report.

• Nvidia results beat, as “the most important stock on planet earth” surges. Nvidia reported an EPS of $5.16, exceeding the forecasted $4.61, alongside actual revenue of $22.1 billion, outpacing the expected $20.55 billion.
• Fed Minutes and Speakers push back on early rate cuts, market listens. Following the release of minutes from the Federal Reserve’s latest gathering, it became evident that most officials remain cautious about the prospect of early interest rate cuts, prioritizing a wait-and-see approach over immediate adjustments. This has led the markets to also revise their forecast of the initial rate cut, now anticipating it to occur in June, instead of May, with a total of four reductions expected for the year.

• US bond yields move higher on rate cut pushback. The recent surge in US bond yields reflects a notable shift in market sentiment driven by the Federal Reserve’s resistance to early interest rate cuts.
• Global Flash PMI data was mixed. US data beat expectations, but UK and European data disappointed in places, and was mixed at best.

Global financial market developments

• Global equities rallied last week with US and Japanese averages at record levels.
• US and European moved to still higher yields.
• The US Dollar Index retraced lower from a recent multi-month high.
• Gold futures higher to the middle of the wider, intermediate-term range.
• Oil futures nudged further to the upper end of a broader range, but sold off Friday.

Key this week

Central Bank Watch: A very quiet week for central banks, but we do see the Reserve Bank of New Zealand interest rate decision Wednesday.

Macro Data Watch: The focus this week will be on German Gfk Consumer Confidence, Retail Sales, Unemployment and CPI, US Durable Goods, Consumer Confidence, GDP, EU Unemployment and CPI, and PCE and global manufacturing PMI data.

Steve Miley (The Market Chartist)

Editor in chief

Steve Miley is the Market Chartist and has 32 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Mar... Continued