NVIDIA’s Rise, Powell’s Speech, and Friday’s Anticipations

Markets on Thursday oscillated between optimism and caution. After a week that started with a whimper but rapidly gained momentum, investors found themselves treading carefully by week’s end.

NVIDIA had been the beacon of positivity. Their midweek earnings report had shown stellar figures, well above analysts’ predictions. Consequently, Thursday’s opening saw a surge in NVIDIA’s stock prices. However, as the day progressed, the tech giant’s stocks couldn’t sustain their highs, causing a palpable sense of concern in the trading world.

This dip in sentiment was further compounded by the release of US unemployment claims and the more disappointing durable goods orders. While the former came in slightly lower than anticipated, the latter plummeted much more than analysts had predicted.

Yet, what truly overshadowed these figures was the palpable anticipation for Federal Reserve Chairman Jerome Powell’s address at the Jackson Hole Symposium. Despite an uptrend in indices from Monday through mid-Thursday, the market abruptly reversed, giving up its gains by the end of the trading day. It is believed that the market’s sharp decline can be attributed to the uncertainty surrounding what Powell might reveal in his Friday address.

In the currency markets, EURUSD stole the spotlight. After breaking its key dynamic support – the neckline of a notable triple top formation – the currency pair signaled a potential sell-off. The strength of the USD was further emphasized as both USDJPY and USDCHF exhibited bullish trends, aiming for new highs and touching monthly peak levels, respectively.

Commodities showed a divergent trend. Precious metals, including gold and silver, displayed a bearish tilt, undergoing a slight correction. In contrast, oil prices showed some resilience. Both Brent and WTI aimed to counteract the bearish signal emanating from the head and shoulders pattern. Their performance on Friday would determine whether they can stave off this looming bearish sentiment.

The primary event for Friday, undoubtedly, is Jerome Powell’s speech at the Jackson Hole Symposium. The market’s response to his address will likely set the tone for the day and potentially influence trading sentiments into the following week.

Moreover, the European session is set to commence with the release of the German IFO business climate figures. This data could provide some initial direction to European markets and influence early trading patterns.

In conclusion, while NVIDIA’s glow illuminated the initial part of the week, the uncertainties surrounding the Federal Reserve’s policies and the ensuing market reactions have taken center stage. Friday’s trading session, with Powell’s speech at its heart, is poised to be a pivotal one, potentially setting the tone for the weeks to come.

Source: https://www.axiory.com/analytics/market-news/nvidia-s-rise-powell-s-speech-and-friday-s-anticip