Stocks Waver in Thin Trading Before Nvidia Reports – Europe Market Wrap
Markets moved little on Tuesday due to the impending Nvidia earnings and the busy calendar of US economic data later in the week.
The dollar, Treasuries, and US equities futures all saw minimal movement. Prior to Nvidia, there are a lot of moving parts, particularly following an earnings season where other Magnificent Seven megacaps posted underwhelming numbers. The wait-and-see attitude is being exacerbated by impending statistics on US economic growth, pricing, consumer expenditure, and jobs.
Due to its high value and substantial weighting in the S&P 500 (second only to Apple), Nvidia is prone to significant fluctuations that could have far-reaching effects. According to data, options market pricing indicates that traders anticipate the possibility of an over 10% shift in either direction following earnings. This translates to about 160 points on the Nasdaq 100 Index, or a 0.8% increase.
Ahead of schedule, the Stoxx 600 Index in Europe erased a lead thanks to gains for miners and automakers offset by drops for retailers. Trade volumes were light, with activity on the majority of European benchmarks being roughly 75% of the 30-day average.
