The Best Investment Manager's Daily Analysis: Nvidia's Disappointing Results Shake Asian Markets, Caution Ahead in Europe
Today, the global markets are seeing a sea of red as AI giant Nvidia (NASDAQ:) falls short of investor expectations, causing a 7% drop in after-hours trading. Despite its incredible 150% rally this year, caution is advised due to sky-high valuations. This has also led to declines in other tech stocks like chipmaker TSMC and Nasdaq futures.
In Europe, Germany and Spain will release their inflation data for August, with expectations of a slowdown. Any surprises could impact the eurozone inflation reading later this week and lead to further ECB policy easing. Market swaps are pricing in a September rate cut, but uncertainty remains for October and December.
Meanwhile, the U.S. jobless claims report is gaining importance after Fed Chair Powell's remarks on the labor market. Currency markets are stable, with the dollar hitting a new high after a rate cut in New Zealand. U.S. Treasury yields are quiet, with the two- and 10-year curve on the verge of turning positive.
Key events to watch today include the CPI data from Spain and Germany, U.S. jobless claims, ECB panel discussions, and the final U.S. Q2 GDP reading.