Bruised Stocks Face Week Full of Tests, From Nvidia to Powell

  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 45 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 50%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

Equity traders reeling from the market’s worst stretch since February face some pivotal events in the days ahead, and a closely watched speech by Federal Reserve Chair Jerome Powell may not even be the biggest test of all.

Ahead of Powell’s address Friday at a Fed symposium in Wyoming, traders are going to look to a crucial earnings report Wednesday from Nvidia Corp. to set the tone. A blowout forecast for surging revenue in May from the chipmaker, now the fourth-largest component of the S&P 500 Index, helped ignite the artificial-intelligence rally that’s powered the benchmark’s roughly 14% advance this year.

“Investors are betting on a narrative that inflation is under control and the Fed can declare victory, but it has yet to become a reality — and that’s the biggest risk to the stock market,” said Stephanie Lang, chief investment officer at Homrich Berg. At the same time, “it’s going to be tough for this rally to continue unless Nvidia can translate the power of AI into earnings growth.”

As the selloff in US stocks gained momentum last week, with the S&P 500 posting its first three-week slide since February, so did the appetite for options contracts betting on more losses. The S&P 500 has dropped 4.8% in August, on pace for the worst month this year, and the Cboe VIX Index — a measure of expected swings in the benchmark — is near the highest since May. While the weakness in stocks is hardly fostering panic, derivatives traders are definitely taking notice.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 83. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

US stocks trade mixed as the Dow caps off its worst week since MarchThe S&P 500 and Nasdaq Composite both notched their third consecutive week of declines.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Bitcoin hit with a bearish bat: Stocks headed lower on DXY strength?(Kitco commentary) - I was wrong about Bitcoin getting over 32k here. It could be because some have decided it really is a “fugazi,” or maybe technical selling from traders on the breach of the upward trendline under low liquidity exacerbated the move
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »

Stocks look set to end brutal week with more steep losses: Stock market news todayStocks were set to continue an August swoon on Friday.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »