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.
Ireland Latest News, Ireland 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.
Read more »
Pence Wouldn’t Reappoint Powell, Floats Shelton for Fed BoardMike Pence said if he is elected president he wouldn’t reappoint Federal Reserve Chairman Jay Powell when his term expires in 2026, and floated economist Judy Shelton for the central bank’s board.
Read more »
All Eyes on Fed Chief Powell in Jackson Hole: Eco Week AheadIt’s late August, which means we’re headed to Jackson Hole for the Kansas City Fed’s annual symposium, attended by top central bankers from around the world. And as usual, everyone is wondering in particular just what Fed Chair Jerome Powell — who’s expected to speak Friday morning — might have to say.
Read more »
All Eyes on Fed Chief Powell in Jackson Hole(Bloomberg) -- It’s late August, which means we’re headed to Jackson Hole for the Kansas City Fed’s annual symposium, attended by top central bankers from around the world. And as usual, everyone is wondering in particular just what Fed Chair Jerome Powell — who’s expected to speak Friday morning — might have to say.Most Read from BloombergUS Consumers Near Day of Reckoning as Pandemic Cash Stash ShrinksRolls-Royce Debuts Droptail Roadster, Priced at Over $30 MillionMercedes-Benz Unveils the New
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
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.
Read more »