Ipek Ozkardeskaya
Swissquote Bank Ltd
Nvidia hasn’t said anything yet, and the market is already making big swings – to give you an idea on the potential of a positive or a negative move when the results finally arrive. According to options positioning we could see a 10% move to the upside or to the downside. Mixed earnings and – God Forbid – an earnings miss has potential to send Nvidia’s stock price tumbling, while an earnings beat could fail to gather enough positive momentum – if the beat is not enough strong.
Zooming out, Nvidia’s 4% drop yesterday sent an early warning to the market. The S&P500 retreated 0.6% and settled below the 5000 at the close, while Nasdaq fell nearly 0.80%. It almost feels like Nvidia earnings could be a decisive moment in the AI rally as many expect the AI bubble to burst at some point.
Besides Nvidia, the Federal Reserve (Fed) will release its latest meeting minutes in the middle of confused expectations. We can feel the winds changing direction as not only that the first Fed cut expectation has been pushed back to June – with some 80% chance attached to it – but some start saying that the next move from the Fed could even me a rate hike!
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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