The opinions expressed below are my own and do not necessarily represent those of Visdom Investment Group, LLC.
NVDA
Markets were quiet, as usual recently. The S&P opened down small and climbed slowly over the day. Treasury yields did bupkis until late in the day, with rates dropping from 2-10 years out on the curve. Capital flow was anemic (84%).
Let’s keep this simple. The US equity market waited today. Nvidia, the largest company in the S&P 500 and the crown jewel of the Mag 7, announces their quarterly results after the close. NVDA is 8% of the S&P 500. Whatever NVDA, it will drive the index in the same direction. Additionally, whatever NVDA’s tone, that will spillover to the entire market.
Investors’ attitudes will hinge on the feel of the Nvidia results. My point is that NVDA matters even more than the direct weight on the S&P because investors will broadly apply their feelings from NVDA to almost all other US stocks out there.
I don’t know whether NVDA can drive the stock market up many percent tomorrow, but if they say something awful, they can certainly drive the stock market down multiple percent. Feels dicey at the 11th hour but the high probability outcome is that they say good things.
Let’s see what they say and then how everyone reacts.
See you tomorrow.
-Mike
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