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Market Insights

Trading Insight: Nvidia earnings boost stocks, Jackson Hole underway, BRICS summit wraps up

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Daily Insight Talking Points:

  • Nvidia smashes estimates, stock hits record high in pre-market trading. Can the stock rescue the US100, SPX500?
  • Emerging market currencies (EM) await final remarks from BRICS - will Saudia Arabia be the newest member of BRICS (Brazil, Russia, India, South Africa) plus?
  • All eyes on Jackson Hole - focus on Fed Powell and ECB president, Christine Lagarde

Nvidia - The AI gift that keeps on giving

This earnings season has seen the retail industry under pressure, with companies like Macy’s, Footlocker and several others taking strain. But as consumers adopt more cautious spending habits, companies like Nvidia, show that one industry that keeps on growing, is that of AI (artificial intelligence).

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For industry leader and chipmaker, Nvidia, their interest and innovative technology that has attracted many investors, has allowed the company to gain a major competitive advantage over its competitors in a short period of time.

After rising more than 24% after its Q1 report in May, the company released its Q2 earnings report after the closing bell on Wednesday, delivering another set of impressive results, lifting the price of the stock to a new high of $502.00 in post-market trading.

NVDA Summary

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With Nvidia currently holding a 4.6% weighting in the US100 and a 3% weighting in the SPX500, the upside surprise in Nvidia has provided stock indices with a glimmer of hope that appears to be spilling over into other risk assets.

Looking to Jackson Hole for the next big move

For the next big move, the annual Jackson Hole Symposium is currently underway, hosting global policymakers from across the globe. As recession fears, interest rates and inflation remain at the forefront of the agenda, the main event is scheduled for Friday, 25 August, where Fed chair, Jerome Powell is expected to provide clues about the near-term trajectory for rate hikes, which could influence short-term rate expectations.

This will then be followed by a speech from the president of the European Central Bank (ECB), Christine Lagarde.

Economic Calendar

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Not investment advice. Past performance does not guarantee or predict future performance.