Technology Shares surged yesterday following the release of earnings from NVIDIA. The NASDAQ ended Thursday with a gain of 2.5%. This move higher saw the VIX close lower by 4.50% at a price of 19.14. Nvidia (NVDA) has issued a strong projection for its second-quarter revenue, surpassing expectations on Wall Street by more than 50%. The company also revealed its plans to increase its supply in order to meet the rising demand for its artificial intelligence (AI) chips, which are utilised in powering ChatGPT and similar services. Following this news, Nvidia’s stock witnessed a significant surge of up to 28% in yesterday’s session. During his virtual appearance at the Wall Street Journal ‘s CEO Council Summit event, Elon Musk discussed the creation of an artificial intelligence (“AI”) business that can compete with the likes of Google (GOOGL)and Microsoft (MSFT). He also hinted at the possibility of involving Twitter and other various parts of his corporate empire in this venture. Musk even predicted that Twitter could soon end its financial losses. Given Tesla’s use of AI in enhancing its autopilot and self-driving technologies, Musk suggested that Twitter and Tesla could potentially collaborate as partners in an AI company, drawing a parallel to the relationship between Microsoft and OpenAI. According to JPMorgan Chase (JPM), the U.S. has a 25% chance of running out of cash before a deal to raise the debt limit is reached. Still, the government will likely raise the debt ceiling in time, according to the company’s chief U.S. economist Michael Feroli. He also remarked that the chances of passing that deadline without an increase are increasing. Fitch Ratings has issued a warning that it may downgrade the credit ratings of the United States due to the increasing political division that is impeding a resolution to the nation’s debt ceiling crisis. The ratings agency expressed concern over the lack of progress in raising or suspending the debt limit despite the approaching deadline. In response to this news, the value of the safe-haven Japanese Yen briefly rose before retracing some of its gains, while there was a modest decline in Treasury futures. Opposing viewpoints on the need for more interest-rate hikes dominated the Federal Reserve’s May meeting. Some participants said that further policy tightening might not be required if the economy improved as forecast, while others expressed concerns about the slow progress in achieving the 2% inflation target. European Markets closed lower. During a session with lawmakers in Brussels, European Central Bank (ECB) Vice President Luis de Guindos highlighted the potential risks and factors influencing inflation. He mentioned that upward risks to inflation originate from increasing wages and expanding profit margins. On the other hand, potential downside risks include a potential decline in lending if the banking sector faces renewed pressure. A research paper from the London School of Economics reported that the U.K.’s departure from the European Union has added nearly £7 billion (roughly $9 billion) – or £250 per household – in extra food costs between the end of 2019 and March 2023. Had the U.K. remained in the EU, it would have shaved 8% off the 25% food inflation over that time frame. In Asia, South Korea’s Producer Prices rose at the slowest rate in 27 months in April, as agricultural and utility prices declined, according to data released by the central bank. The Producer Price Index (PPI) increased by 1.6% in April compared to the same month the previous year, which is a slower growth compared to the 3.3% rise recorded in March. This marks the slowest growth rate since January 2021. Elsewhere, Oil fell 3.38% while a stronger Dollar saw Gold close lower by 1.1%.
To mark my 2800th issue of TraderNoble Daily Commentary I am offering a special 2-Year Rate of Euro 2750 for my Platinum Service which includes 1 to 4 updated emails throughout the trading day to demonstrate this value, a monthly subscription over the same period would cost 4440 euro in total This offer represents a 38% discount and is open to both new and existing members. If anyone is interested in this offer can you please email me on email@example.com for details
For anyone following my Platinum Service it lost 75 points yesterday and is now ahead by 2422 points for May. April saw a gain of 3354 points while March closed with a gain of 6168 points. The Platinum Service made 3164 points in February, 4687 points in January 2054 points in December, 4789 points in November and a record 9619 points last October. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1900 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification