"It's been a very strong quarter for big tech earnings, but that meant much for the share prices of the season's earnings beaters. With Nvidia ( NASDAQ:NVDA) poised to pull the curtain on its results, wrapping up what's been a hot, but apparently not hot enough, season of earnings, investors might get enough info about the state of the AI trade to move forward."
"And with the government shutdown coming to an end, we'll also have more visibility into the economic numbers and the odds of a December Fed rate cut, which might be good or bad for markets, as investors take a while to digest the latest wave of data points against what are some still fairly high expectations in the face of increased cautious optimism (or outright pessimism) on the part of the smart money."
"Additionally, we'll need to hear a bit more from Jensen Huang about the path forward and how the AI demand will go in the coming months and quarters. Though I'm sure the numbers from Nvidia will be decent, I'm not sure they'll help the tech trade reverse course, with the Nasdaq 100 gravitating lower, now down just shy of 5% (that's halfway to a correction) as of the end of Monday's turbulent session of trade."
Big tech delivered a very strong earnings quarter, but many earnings beaters did not see proportionate share price gains. Nvidia's imminent results and management guidance are poised to reveal the health of AI demand and could materially affect the tech trade and broader market. The end of the government shutdown will improve visibility into economic data and the odds of a December Federal Reserve rate cut, influencing market sentiment. Elevated expectations persist amid mixed optimism from institutional investors. Market positioning shows caution, with significant hedge fund selling in Nvidia shares, including Peter Thiel's fund exiting its entire stake in the third quarter of 2025.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]