Bloomberg News reports that US Stock Index Futures were advancing on Tuesday following an optimistic sentiment around Nvidia’s much-awaited earnings. The report of the same has kept the growth of the mega-cap on a strong footing as the relaxed yields on a longer-dated government bond offered much-needed support.
Following sharp losses in the last week related to worries over higher for longer rates of interest coupled with a rise in Treasury yields. The US equities gained some ground Monday caused due to a rally in Nvidia and other stocks. It was just before the chip designers’ earnings in the second quarter were published on Wednesday.
Shares of Nvidia
The shares of Nvidia surged by 1.7% on Tuesday in premarket trading. The rise in shares of the company occurred after almost 9% was added in the previous session. And closing was of about 2% short of the all-time high of $480.88.
What about other stocks?
The stocks of other big companies and growth stocks surged as well. Tesla advanced 3.4% after logging the biggest single-day percentage gain since March.
Investors, in particular, are keenly watching whether Nvidia’s results will match up to raised market anticipations after a blockbuster report in the past quarter that triggered a blistering rally amongst the tech stocks. At the same time, there was a lot of ongoing frenzy around artificial intelligence.
Bloomberg News reports that in the meantime, the yield on 10-year Treasury note slid from a 15-year high of 4.35%, assisting a release on some pressures of the equities.
The sell-off that took place recently was driven by the fact and evidence of the US Economy which is being seen as strong. However, there is a dampening of spirits on hopes that the Federal Reserve might relax monetary policies sooner.
Meeting at Jackson Hole
A meeting at the Jackson Hole, which will be host to the central bankers Thursday will be monitored closely by the investors. Investors will be looking for more clues on the direction of interest rates in the US. Jerome Powell, the Fed Chair’s speech at the meeting is likely to be the center of focus for all. The meeting is supposed to happen on Friday.
Bloomberg News reports that traders are apprehending a pause in the hike of rates next month and they assume it might stand at 86.5%, however, the odds of a rise of 25 basis points in November might have surged to 39% which was earlier 35.8% just a week ago.
The quarterly results obtained from several producers of consumer goods were the center of focus as well Tuesday. Lowe’s Cos surged 3.2% after it was found that the home improvement retailer was at the top quarterly profit estimates.
Macy’s soared 4% following the department store chain defeated the sales of the second-quarter estimates. Coty slid 2.0% after the cosmetics and perfume maker sales were below the expectations of Wall Street.
