Two red flags at Nvidia [Video]
|Nvidia announced another very strong quarter after the bell. They beat earnings expectations and forecasts but two flags have emerged: pressure on profit margins and high concentration of big customers. Nvidia fell 2.5% in the afterhours trading. Failure to break a record post-earnings, and the rising worries regarding margins and competition could lead to a certain profit taking over the next few sessions.
As such, the S&P500 and Nasdaq futures are in the red this morning, and we could see a deeper retracement from the ATH levels with the lack of support from Nvidia earnings.
Elsewhere, the hawkish shift in Federal Reserve (Fed) expectations continue to give support to the US dollar but the rising hawkishness from the European Central Bank (ECB) and the Bank of England (BoE) will likely slow and potentially reverse the euro and sterling’s selloff against the greenback.
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