Ipek Ozkardeskaya
Swissquote Bank Ltd
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.
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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