A look at the day ahead in the US and global markets by Mike Dolan
There’s not much to worry about with the most valuable company in the world – or the theme of artificial intelligence – but just admitting that triple-digit growth can’t last forever has been enough to send the stock price of Nvidia (NASDAQ 🙂 to slow down and dampen the global market. tech stocks.
The chip giant’s $3.6 trillion revenue forecast on Wednesday disappointed Wall Street, with the stock down more than 3% pre-market – while peers Advanced Micro Devices (NASDAQ:), Intel (NASDAQ:) and Qualcomm (NASDAQ 🙂 in likeability dropped by about 1%. and European chip manufacturers also fell.
While Nvidia once again beats most metrics and consensus estimates, it predicts the slowest revenue growth in seven quarters and signals supply chain constraints for next year. Executives warned investors that the company’s margins would fall several percentage points to the low 70%s until production kinks are ironed out.
But don’t shed too many tears. AI Bellwether’s latest earnings report was still extraordinary by most measures: Revenue in its core data center segment more than doubled, and the company’s expected fourth-quarter revenue of $37.5 billion was above the average estimate of $37.09 billion.
And in many ways the price response is modest. After another 20% share gain in the past two months, markets believe that most of the continued growth is already in the price for now.
The American retailer was more worrying on Wednesday Goal (NYSE:)’s big miss on its holiday quarter earnings and sales forecast – sending the stock plummeting more than 20% and contrasting with the previous day’s gains from the world’s No. 1 retailer Walmart (NYSE:) :).
The politics of President Donald Trump’s incoming administration still dominated background thinking — and there was no sign yet of his choice for Treasury secretary — and geopolitical concerns were rumbling abroad.
One of the few post-election trades that remained moving was – and the dominant crypto asset rose to a record $98,000 overnight, up more than 40% in the past month.
Overall, the broader market was more subdued, with stock futures marginally in the red on Thursday and most European and Asian indices also lower.
U.S. Treasury yields fell on Wednesday despite a poorly received auction of 20-year bonds, but the dollar remained firm.
Bank of Japan Governor Kazuo Ueda said Thursday that the central bank would “seriously” take exchange rate movements into account when making its economic and price forecasts. He noted there would be more information to process before next month’s policy meeting.
Another dominant market story abroad took place in India, where companies belonging to the Adani Group conglomerate lost as much as $34 billion in market value after U.S. prosecutors charged the billionaire chairman in an alleged bribery and fraud scheme.
Gautam Adani’s flagship Adani Enterprises (NS:) fell as much as 23% to its lowest level since November 2023, marking the worst single-day decline since February last year.
Key developments that should give more direction to US markets later on Thursday:
* Philadelphia Federal Reserve November Entrepreneur Survey, Kansas City Fed November Entrepreneur Survey; U.S. weekly jobless claims, existing U.S. home sales in October; Eurozone consumer confidence November; Canada October producer prices
* US corporate profits: Intuitive (NASDAQ:), NetApp (NASDAQ:), Deere (NYSE:), Ross Stores (NASDAQ:), Copart (NASDAQ:), PDD
*Chicago Federal Reserve President Austan Goolsbee, Cleveland Fed President Beth Hammack and Fed Vice Chairman for Supervision Michael Barr all speak. European Central Bank Chief Economist Philip Lane speaks, Bank of Spain Governor Jose Luis Escriva and Bank of Cyprus Governor Christodoulos Patsalides all speak; Bank of England policymaker Catherine Mann speaks
* The US Treasury Department is selling $17 billion worth of 10-year inflation-protected securities
(This story has been refiled to fix RIC stock in paragraph 1)
(By Mike Dolan,; mike.dolan@thomsonreuters.com; Editing by Toby Chopra)
