While recent market attention has been focused on Federal Reserve Chair Jerome Powell's dovish tone at Jackson Hole and the potential for rate cuts, BofA warns that investors may be overlooking the impact that Nvidia's results could have on equity indices.
Despite the market's current optimism, BofA believes that investors are not adequately pricing in the potential downside risks associated with Nvidia's earnings. This massive investment in AI underlines the importance of Nvidia's earnings, as the company is a major player in this space. However, the firm maintains that the risks surrounding Nvidia's earnings are still underappreciated by the market.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events.
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