There was certainly much anticipation and for the dip buyers, they would be glad that Nvidia did not disappoint. Tech shares led the way in trading yesterday ahead of the earnings release and they are doing so again now. Here's a snapshot of US futures at the moment:
- S&P 500 futures +0.7%
- Nasdaq futures +1.2%
- Dow futures +0.1%
As you can see, it is blatantly obvious that tech is the key driver at the moment. But at least it is helping equities to salvage something towards the latter stages of the month, after the selling in the last three weeks.
That said, is there anything more for equities from hereon? Global economic worries are building and the thing that investors can rely on in some sense is that it will push major central banks to a policy pivot that much quicker.
At this stage, I reckon that equities would much rather get really bad data so that central banks are forced to cut rates and ease financial conditions sooner rather than later. The alternative would be bad enough data to suggest an economic slowdown but not bad enough to force the hands of policymakers.
In other words, if the narrative of higher rates for longer is the one being vindicated, that is not what stock investors would like.
