Hey there, Wednesday brings a completely different vibe from the market chaos we saw earlier this week. Tech is back in the driver's seat, and all eyes are on three massive events converging today. Buckle up. Nvidia Makes History (Almost)Remember when we thought trillion-dollar companies were impressive? Nvidia just shattered that ceiling. The AI chipmaker is racing toward a $5 trillion market cap—a milestone no public company has ever reached. The catalyst? President Trump said he'll discuss Nvidia's advanced Blackwell chips with Chinese President Xi Jinping when they meet in South Korea on Thursday. Translation: potential relief from China's curbs on these semiconductors could be coming. Nvidia shares jumped 3.2% in premarket trading and closed Tuesday at a record $201.03. The stock is up nearly 50% this year alone, adding roughly $1.6 trillion in market value. To put that in perspective, that's more than the entire GDP of most countries. The Fed Is About to Cut (Surprise, Surprise)It's decision day at the Federal Reserve, and—spoiler alert—they're widely expected to deliver a quarter-point rate cut. But here's what actually matters: Chair Jerome Powell's press conference afterward. Why the suspense? Because the government shutdown (now in its 29th day) has frozen most economic data releases. Powell can't lean on his usual "data dependency" mantra, so investors are desperate for any hints about where rates are headed next. Markets are cautiously optimistic, with the S&P 500 rising 0.2% and the Nasdaq climbing 0.6%. Both hit fresh all-time highs on Tuesday. Big Tech Earnings: The Main EventAfter the closing bell today, we get the trifecta: Alphabet, Microsoft, and Meta all report earnings. These aren't just any earnings—they could set the tone for the entire market through year-end. Why? Because everyone wants to know if the massive spending on AI infrastructure is actually paying off. Microsoft just finalized a 27% stake in OpenAI (valued at $135 billion), and its market cap crossed $4 trillion for the first time ever on Tuesday. "This week's Big Tech earnings may be the most important in recent memory," said David Laut, CIO at KERUX Financial. "Investors are skeptical about the stock market's rally over the past two months." Apple and Amazon follow on Thursday. No pressure. Winners and LosersTeradyne absolutely exploded, jumping 22% after crushing earnings and guiding Q4 revenue well above expectations. AI-related test demand is "robust across compute, networking and memory segments," they said. Joby Aviation soared 8% after teaming up with Nvidia to accelerate its autonomous flight technology using Nvidia's Blackwell-powered platform. The future is here, folks. Bloom Energy rocketed 19% after beating earnings expectations. The stock is up more than 400% this year on expectations it'll power AI data centers. On the flip side, Stride (the online education company) plunged 37% after tech platform issues led to 10,000-15,000 fewer student enrollments than expected. Ouch. Enphase Energy dropped 9% on weak Q4 guidance and tariff-related margin pressure—a five-percentage-point hit from reciprocal tariffs. The Trade War Never SleepsTrump is touting deals with South Korea and Japan on the last leg of his Asia tour. Meanwhile, Germany is dealing with an intensifying chip shortage—10.4% of electronics companies now report supply bottlenecks, up from just 3.8% in April. And here's a sobering development: Federal food aid will be suspended starting November 1st due to the government shutdown. That impacts 42 million Americans who rely on SNAP benefits. Twenty-five Democratic states have sued to block the suspension. What's Next?Tonight's earnings reports from the tech giants could either validate this AI-driven rally or expose cracks in the narrative. With markets at all-time highs and valuations stretched, there's not much room for disappointment. And that Trump-Xi meeting on Thursday? If they make progress on chip restrictions, Nvidia could blast through $5 trillion. If not, well... we might see some profit-taking. “Forget Chart Watching — Wait for the Signal”Trading used to mean hours of chart time. Now it just means waiting for your next alert. TriSignal Scanner sends live triangle breakout signals in real time. All you do is execute. 👉 Join TriSignal Scanner and trade hands-free. Stay tuned, Your Market Correspondent FindBetterTrades P.S. - Gold clawed back 1.5% today after Tuesday's historic plunge. Even precious metals need a breather from the drama. |
Post a Comment
Post a Comment