Ipek Ozkardeskaya
Swissquote Bank Ltd
The S&P 500 hit its 46th record high of the year on Monday, Nvidia erased all the summer weakness and flirted with ATH levels as well after the company CEO Jensen Huang said that the next generation Blackwell chip – which suffered some delay – is now ‘in full production’ and that the demand for it ‘is insane’. Around 6% of the S&P500 companies revealed their earnings and nearly 80% reported a positive EPS surprise according to FactSet. And positive vibes could continue as we dive deeper into the earnings season. If nothing, analysts cut their earnings expectations for the Q3 gradually to around 4% growth, whereas this expectation was near 8% in summer. Yet the companies themselves have a guidance for about 16% growth in earnings.
Today, Goldman, Bank of America and Citigroup will go to the earnings confessional, tomorrow Morgan Stanley, again tomorrow ASML, then on Thursday we will focus on TSM and Netflix results. Voila. Fasten your seat belt.
In FX and commodities, the US dollar extends gains on softening dovish Federal Reserve (Fed) expectations and oil is down on fading China optimism, OPEC’s lower demand growth forecast and Netanyahu’s willingness to target Iran’s military rather than its oil facilities.
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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