Nvidia’s Impact on Markets
Global markets started today’s session with mixed performance after Nvidia announced very strong earnings and record sales. Despite the excellent results, the stock declined as investors worried about weaker data center sales and uncertainty in the Chinese market. This drop affected Nasdaq futures and technology stocks in Asia and Europe, especially companies directly linked to Nvidia. At the same time, some competing Chinese companies benefited and saw gains, creating a sense of “selective risk-taking” among investors. The overall picture: while earnings were strong, expectations for the future are less optimistic, which explains today’s market volatility.
US Economic Data
Important data was released from the United States today: second-quarter GDP grew by 3.3%, higher than expectations. The main driver of this growth was a sharp drop in imports and a reduced trade deficit, which gave the economy a strong boost. Weekly jobless claims also came in better than expected at just 229,000, showing the labor market remains strong. These positive results gave investors more confidence that the US economy is moving in the right direction, boosting risk appetite and improving short-term market sentiment.
What Does This Mean for Markets?
The combination of Nvidia’s strong earnings and positive US economic data gave markets a big push today. Higher growth and a stable labor market show that the US economy is stronger than many had expected. This could drive indexes like the Nasdaq to climb further, especially with support from cyclical sectors. However, AI-related stocks remain highly volatile due to news linked to China. In short: markets today are balancing between two forces the strength of the US economy on one side, and the volatility of the tech sector on the other leading to a session full of movement and fluctuations.
