403
Sorry!!
Error! We're sorry, but the page you were looking for doesn't exist.
Powell Stands His Ground And NVIDIA Does It Again
(MENAFN- Mid-East Info) By Daniela Sabin Hathorn, senior market analyst at Capital
The FOMC wasn't as dovish as markets had hoped last night when Jerome Powell poured cold water on those expecting another 25bps cut in December to be a done deal. The Chairman said that a cut in the last meeting of the year is“not a foregone conclusion”, in fact,“far from it.” The statement knocked some wind out of the risk-on mood in markets, pushing yields and the dollar higher, weighing on gold and limiting the upside in equities. However, the impact has been limited, especially considering how heavily skewed the market is towards an easing Fed. It's likely that with so many things going on this week, the market decided to focus on something else, like earnings for example. For now, the daily chart shows stagnant momentum in the S&P 500 with little movement in the pre-market as investors await another round of key earnings, including Apple and Amazon after the bell. S&P 500 daily chart: -p decoding="async" class="CToWUd" title="A graph of stock marketAI-generated content may be incorrect." src="#" alt="A graph of stock marketAI-generated content may be incorrect." width="624" data-bit="iit" /> Past performance is not a reliable indicator of future results. In other (monumental) news, NVIDIA has become the first publicly traded company to exceed a $5 trillion market capitalization. The company's stellar performance has been driven by a combination of factors which include strong earnings performance, demand growth, and a leading position in AI infrastructure at a time when the sector is growing exponentially. Looking ahead, it continues to benefit from powerful structural tailwinds that could sustain its long-term growth story. The global build-out of AI infrastructure still has many years to run. As demand for advanced compute power accelerates, NVIDIA is well-positioned to capture a significant share of this investment. However, it faces several notable risks despite its historic run. Geopolitical and export-control uncertainties remain a major overhang, as U.S. restrictions on advanced chip exports to China continue to limit access to one of its most important markets. Valuation is another factor under scrutiny, as NVIDIA's current market price already reflects much of its future potential, leaving little margin for error. Meanwhile, competitive and cyclical risks are rising.
The FOMC wasn't as dovish as markets had hoped last night when Jerome Powell poured cold water on those expecting another 25bps cut in December to be a done deal. The Chairman said that a cut in the last meeting of the year is“not a foregone conclusion”, in fact,“far from it.” The statement knocked some wind out of the risk-on mood in markets, pushing yields and the dollar higher, weighing on gold and limiting the upside in equities. However, the impact has been limited, especially considering how heavily skewed the market is towards an easing Fed. It's likely that with so many things going on this week, the market decided to focus on something else, like earnings for example. For now, the daily chart shows stagnant momentum in the S&P 500 with little movement in the pre-market as investors await another round of key earnings, including Apple and Amazon after the bell. S&P 500 daily chart: -p decoding="async" class="CToWUd" title="A graph of stock marketAI-generated content may be incorrect." src="#" alt="A graph of stock marketAI-generated content may be incorrect." width="624" data-bit="iit" /> Past performance is not a reliable indicator of future results. In other (monumental) news, NVIDIA has become the first publicly traded company to exceed a $5 trillion market capitalization. The company's stellar performance has been driven by a combination of factors which include strong earnings performance, demand growth, and a leading position in AI infrastructure at a time when the sector is growing exponentially. Looking ahead, it continues to benefit from powerful structural tailwinds that could sustain its long-term growth story. The global build-out of AI infrastructure still has many years to run. As demand for advanced compute power accelerates, NVIDIA is well-positioned to capture a significant share of this investment. However, it faces several notable risks despite its historic run. Geopolitical and export-control uncertainties remain a major overhang, as U.S. restrictions on advanced chip exports to China continue to limit access to one of its most important markets. Valuation is another factor under scrutiny, as NVIDIA's current market price already reflects much of its future potential, leaving little margin for error. Meanwhile, competitive and cyclical risks are rising.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Most popular stories
Market Research
More Story
Comments
No comment