Stocks Remain Buoyant – Nasdaq Hits Fresh Record Up 0.65%
Markets continued to hit fresh record highs in what was a disjointed trading day yesterday influenced by geopolitical news and holiday-thinned markets. Gold had earlier traded at a new all-time high after news of a helicopter crash involving Iran’s President hit the wires and haven flows helped push it higher. Later in the day, the Nasdaq hit another record high as investors looked ahead to tomorrow’s Nvidia earnings report, it finished up 0.65%, the S&P closed up 0.09% and the Dow dropped off its recent record high, losing 049% on the day. US Treasury yields ground slightly higher, the 2-year adding 1 basis point to 4.837% and the 10-year rising 2 basis points to 4.437%. Oil prices fell slightly, with Brent dropping 0.32% and WTI losing 0.19% to close at $83.71 and $79.65 respectively. Gold was probably the standout mover on the day again, as it jumped to a fresh record high at $2,449.89 before closing the day up 0.43% at $2,340 per ounce.
Nvidia in Focus for the Market
Once again, market darling Nvidia finds itself in the unenviable position of having most of the stock market focus solely on its performance in the US this week. With the other members of the ‘magnificent seven’ having already reported earnings data and a relatively quiet event calendar, investors now find themselves looking at the company that has been responsible for roughly a quarter of the gains in the S&P over the last year for its next move. Shares in Nvidia are up around 5% in this quarter, a modest rise compared to the 82% achieved in Q1and now tomorrow’s data takes on even greater importance with the major indices sitting at record highs. Another strong report and profit upgrade could take indices into new lofty ranges, whilst any disappointment should see significant corrections across the tech sector that could then have a domino effect on the greater market.
Central Banker Updates Ahead for Investors
It is another relatively quiet day on the macroeconomic calendar front today with little to inspire traders in terms of data releases until the New York session. However, there are some key updates and speeches due out from central banks that could see some moves in markets. The Asian session will see focus on the Australian market early in the day as the RBA releases its latest Monetary Policy Meeting Minutes. The European session has little in the way of data, but speeches from ECB President Christine Lagarde and US Treasury Secretary Janet Yellen will keep traders’ eyes on the newswires. The New York session will see the initial focus north of the border for the key Canadian CPI data release before we hear from a raft of Fed members throughout the session. Bank of England Governor Andrew Bailey is also due to speak later in the day which should keep sterling traders on their toes.
