Quick overview

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Wall Street trading was quiet before the eagerly awaited results from Nvidia, the final of the “Magnificent Seven” megacaps to report. The value of the dollar increased. Bonds with longer dates declined. As Nvidia faltered, stocks managed to squeeze out gains just hours before the world’s most valuable company’s earnings.

The figures may also have ramifications for the overall market  because of the tech giant’s significant impact on key indexes,  in addition to providing a perspective on artificial intelligence spending

Nvidia can influence the entire market with an 8.1 percent weighting in the S&P 500 and a $4.4 trillion market valuation. According to data compiled by Bloomberg, options traders are pricing in a move of roughly 6 percent in either direction.

Valuations are high because the market has been factoring in expectations of high Nvidia earnings for a long period.

The next obstacle for markets to overcome, he added, is Nvidia, since Wall Street has been virtually guaranteed a rate cut by the Federal Reserve in September. Bets on policy easing caused short-dated Treasury yields to decline as investors prepared for a $70 billion US sale of five-year notes.

The 30-year yield slightly increased following President Donald Trump’s recent announcement that he was dismissing Fed Governor Lisa Cook due to a mortgage fraud allegation. According to Kevin Hassett, his top economic adviser, Cook ought to take a leave of absence while her position on the board is being contested.