The USD is the strongest and the NZD is the weakest as the NA session begins. Is it all about Nvidia. Nvidia's Q2 revenues surpassed Wall Street's already high expectations, leading to a surge in its shares. While predictions were for sales of $12B for the second quarter, Nvidia reported $13.5B, more than double the previous $6.7B. The company also forecasts $16B in sales for the next quarter. This surge underscores Nvidia's pivotal role in the AI boom, as they have consistently invested in graphics processors essential for AI technology. Nvidia CEO, Jensen Huang, emphasized the onset of a new computing era and the rush to embrace generative AI. He also said "The new computing era has begun" ("begun" means near the beginning). Shares of Nvidia are trading up 7.96% in premarket trading.
Of course, it's not all about Nvidia. The Jackson Hole Summit will start later today and reaches its crescendo at 10:05 AM ET tomorrow when Fed chair Powell speaks on the economy. Powell and other central bankers from around the world will be present and markets will be keenly awaiting insights on future interest rate policies not only in the US but overseas. Some of the U.S. economic data has been stronger than expected such as retail sales last week, leading some Federal Reserve officials to hint at a potential increase in borrowing costs. At the same time, claims have ticked a bit higher and the ISM flash yesterday was weaker. Overseas economies also are slowing which has led to a higher dollar, which will also limit growth ahead. While U.S. Treasury yields dropped yesterday, it's unclear how the Fed will interpret the current economic data. US yields are modestly higher.
The USDJPY, which sold off yesterday, is extending to a new high in early US trading and in the process is extending back above the near converged 100/200 hour MAs at 145.59 area (see blue and green lines on the chart below). The low yesterday - and in the early hours of the trading day - stalled near the 38.2% of the move up in August.
A snapshot of the markets as the NA session gets underway shows:
- Crude oil is trading up $0.08 or 0.10% at $78.97
- Spot gold is trading up $1.21 or 0.06% at $1916.68
- Spot silver is trading down 11% or -0.45% $24.17
- Bitcoin is trading at $26,455. At this time yesterday morning the price was trading at $25,984
In the US premarket for US stocks, major indices are trading mixed. Boeing has some problems which is dragging down the Dow industrial average. Shares of Boeing are trading down 1.76%. The NASDAQ index is rising after sharp games yesterday. The snapshot of the major indices shows:
- Dow Industrial Average futures are implying a decline of 47 points after yesterday's 184.15 point rise
- S&P index futures are implying a gain of 22.25 points after yesterday's 48.48 point rise
- NASDAQ futures are implying a gain of 175 points after a gain of 215.16 points yesterday
In the European equity markets, the major indices are trading marginally higher
- German DAX, up 0.12%
- France's CAC, up 0.18%
- UK's FTSE 100, up 0.22%
- Spain's Ibex, up 0.28%
- Italy's FTSE MIB, up 0.31% (delayed)
In the Asian Pacific today, equity markets closed higher
- Japan’s Nikkei 225, rose 0.87%
- China’s Shanghai Composite, rose 0.12%
- Hong Kong’s Hang Seng, searched 2.05%
- Australia’s S&P/ASX 200, rose 0.47%
In the US debt market, yields are higher after yesterday's declines
- 2-year yield, 4.979% +2.8 basis points
- 5-year yield, 4.382% up to .1 basis points
- 10-year yield, 4.219% up to .1 basis points
- 30-year yield, 4.295% +1.1 basis points
In the European debt market, benchmark 10-year yields are trading marginally lower after declines yesterday:
