Marketmind: Catching breath as Nvidia update due
A look at the day ahead in U.S. and global markets from Mike Dolan
A cocktail of renewed AI excitement, Nvidia (NASDAQ:NVDA)'s imminent earnings update, an impressive 20-year Treasury auction and a leveling off of crude oil prices has invigorated the holiday week.
Intrigue and speculation over this year's artificial intelligence craze has gone up several gears since Friday's ouster of Sam Altman as boss of ChatGPT-developer OpenAI and his subsequent defection to the firm's biggest sponsor Microsoft (NASDAQ:MSFT) — fueling talk Big Tech will hoover up all the talent in the area.
While the OpenAI boardroom row seems to center on the speed and openness of further AI development, amid some regulatory disquiet, the shift in key players lifted Microsoft and the other megacap tech names 1.5% on Monday.
And with semiconductor giant Nvidia expected to report another blockbuster earnings report after the bell on Tuesday — as the AI boom has seen explosive growth in demand for its high-end chips — Wall St stocks powered to their highest close since Aug. 1.
Nvidia is expected to report a nearly 173% jump in revenue for the third quarter, according to analysts polled by LSEG, and Wall Street estimates it will forecast a more than 195% rise in revenue for the current quarter. Its stock, which is up 240% this year, was up modestly ahead of Tuesday's open.
The S&P500's rally to almost four month highs on Monday — marking an 11% surge in less than four weeks and tracking year-to-date gains of some 18.5% — struggled for air in the futures market, where there was a slight downtick overnight.
But the other, only slightly more prosaic, craze around peak borrowing rates remained cause for optimism.
Decent demand for the $16 billion auction
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