Nvidia Destroys Earnings ... And The Nasdaq ... DUMPS???
What The Jensen Huang Is This Nonsense?
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Rug Pull #76 Of The Year So Far?
Futures were bright green in Asia trading hours, opened greenish in Chicago and at the time of writing equity indices have faded to red The spike up after hours yesterday was, of course, a result of the blowout Nvidia earnings.
If a real-world catalyst were needed to propel the Nasdaq, and for that matter the tech-heavy S&P500, to new all time highs, then this is it. The narrative is "AI", the reality is a capex refresh cycle. Reality isn't always needed to elevate risk asset prices, as the post-Covid crisis rally proves, but when Main Street spending and risk-on financial conditions coincide, the effect can be powerful.
What happens next in the short term is anyone's guess. Call buying into Nvidia earnings was heavy and we expect significant price target uplifts to come from Wall Street sellside analysts today and tomorrow. This will draw a great deal of late money into $NVDA and any other stock that can credibly claim to be an AI name. This is perfect conditions for Big Money to use this flood of money for the purposes of exit liquidity. Probably not with all their stakes in these names, but certainly buying by late money can provide a little cashed gains for any positions Big Money was picking up at the 2022 lows. In which case we may see something of a fade both with Nvidia itself as well a continuation of the present drop in the Nasdaq, before a new move higher (after the civilians have frightened themselves).
The Good Stuff
For our paying members only we now walk through our longer-term outlooks for the S&P500, the Nasdaq, the Dow and the Russell, Bitcoin and Ether.