Tech stocks have rebounded from the selling of Nvidia, which fell as much as 8% after the company's Q3 guidance disappointed some investors. Despite Q2 results meeting or exceeding analysts’ estimates, Nvidia's Q3 guidance fell short of some of the more optimistic estimates. As a result, Nasdaq 100 futures added 0.1% after sliding as much as 1.4% earlier. Intel Corp., Apple Inc. and Microsoft Corp. all posted small gains; S&P 500 futures rose 0.2%, fully reversing an earlier drop as Germany’s DAX Index hit a new record.
In premarket trading, Nvidia fell 3%, reversing a much bigger plunge, after the company failed to live up to investor hopes with its latest results, delivering an underwhelming forecast and news of production snags with its much-awaited Blackwell chips. Other notable premarket movers include Affirm Holdings, Best Buy, Birkenstock, Dollar General, Five Below, ILearningEngines, Nutanix, Okta, Salesforce, and Topgolf Callaway Brands.
Nvidia’s Q3 earnings report, the most anticipated part of the tech industry’s earnings season, beat analysts’ estimates on nearly every measure, but Nvidia spoiled investors have grown accustomed to blowout quarters, and the latest numbers didn’t qualify especially as regards guidance which came in below some of the more optimistic estimates. NVDA revenue more than doubled to $30 billion in the fiscal second quarter, and the company said third-quarter revenue will be about $32.5 billion; while analysts had predicted $31.9 billion on average, estimates ranged as high as $37.9 billion.
With Q2 earnings season officially at an end, focus is turning back to the macro landscape. Money markets are wagering on 100 basis points worth of rate cuts by year-end but uncertainty remains as to whether the Federal Reserve will ease policy by a quarter-point next month or deliver a larger 50 basis-point cut. Atlanta Fed President Raphael Bostic said it “may be time to cut,” but he’s still looking for additional data to support lowering rates next month.
European stocks gain as traders added to their ECB interest-rate cut bets after soft inflation data from Spain and Germany which reinforced expectations for a European Central Bank rate cut in September. The Stoxx 600 rises 0.8% to the highest since mid July while Germany’s DAX gained as much as 0.7%, reaching 18,912.47 points and topping its previous peak of May 15.
## Bottom Line
The tech industry's earnings season has come to an end, with Nvidia's Q3 earnings report being the most anticipated part. Despite the company's Q2 results meeting or exceeding analysts’ estimates, its Q3 guidance fell short of some of the more optimistic estimates, causing a drop in its share price. However, the tech stocks have since rebounded. The focus is now shifting back to the macro landscape, with money markets wagering on 100 basis points worth of rate cuts by year-end.
What are your thoughts on this? Do you think the Federal Reserve will ease policy by a quarter-point next month or deliver a larger 50 basis-point cut? Share this article with your friends and let us know your thoughts. Also, don't forget to sign up for the Daily Briefing which is everyday at 6pm.
Tech stocks have rebounded from the selling of Nvidia, which fell as much as 8% after the company's Q3 guidance disappointed some investors. Despite Q2 results meeting or exceeding analysts’ estimates, Nvidia's Q3 guidance fell short of some of the more optimistic estimates. As a result, Nasdaq 100 futures added 0.1% after sliding as much as 1.4% earlier. Intel Corp., Apple Inc. and Microsoft Corp. all posted small gains; S&P 500 futures rose 0.2%, fully reversing an earlier drop as Germany’s DAX Index hit a new record.
In premarket trading, Nvidia fell 3%, reversing a much bigger plunge, after the company failed to live up to investor hopes with its latest results, delivering an underwhelming forecast and news of production snags with its much-awaited Blackwell chips. Other notable premarket movers include Affirm Holdings, Best Buy, Birkenstock, Dollar General, Five Below, ILearningEngines, Nutanix, Okta, Salesforce, and Topgolf Callaway Brands.
Nvidia’s Q3 earnings report, the most anticipated part of the tech industry’s earnings season, beat analysts’ estimates on nearly every measure, but Nvidia spoiled investors have grown accustomed to blowout quarters, and the latest numbers didn’t qualify especially as regards guidance which came in below some of the more optimistic estimates. NVDA revenue more than doubled to $30 billion in the fiscal second quarter, and the company said third-quarter revenue will be about $32.5 billion; while analysts had predicted $31.9 billion on average, estimates ranged as high as $37.9 billion.
With Q2 earnings season officially at an end, focus is turning back to the macro landscape. Money markets are wagering on 100 basis points worth of rate cuts by year-end but uncertainty remains as to whether the Federal Reserve will ease policy by a quarter-point next month or deliver a larger 50 basis-point cut. Atlanta Fed President Raphael Bostic said it “may be time to cut,” but he’s still looking for additional data to support lowering rates next month.
European stocks gain as traders added to their ECB interest-rate cut bets after soft inflation data from Spain and Germany which reinforced expectations for a European Central Bank rate cut in September. The Stoxx 600 rises 0.8% to the highest since mid July while Germany’s DAX gained as much as 0.7%, reaching 18,912.47 points and topping its previous peak of May 15.
## Bottom Line
The tech industry's earnings season has come to an end, with Nvidia's Q3 earnings report being the most anticipated part. Despite the company's Q2 results meeting or exceeding analysts’ estimates, its Q3 guidance fell short of some of the more optimistic estimates, causing a drop in its share price. However, the tech stocks have since rebounded. The focus is now shifting back to the macro landscape, with money markets wagering on 100 basis points worth of rate cuts by year-end.
What are your thoughts on this? Do you think the Federal Reserve will ease policy by a quarter-point next month or deliver a larger 50 basis-point cut? Share this article with your friends and let us know your thoughts. Also, don't forget to sign up for the Daily Briefing which is everyday at 6pm.
