Investing.com — Wall Street trading was mixed on Monday as investors awaited earnings release from Nvidia, one of the main beneficiaries of this year’s artificial intelligence boom. While demand for Bitcoin remains strong, the Japanese yen has fallen due to increased uncertainty over the timing of the Bank of Japan’s next interest rate hike.
1. Focus on Nvidia’s Q3 earnings
The main company release this week comes from Nvidia (NASDAQ:), the chipmaker that is leading this year’s AI boom, and is scheduled to report third-quarter results after the close of trading on Wednesday.
The results could be a gauge of investor appetite for tech stocks, AI trading and general stock sentiment after the post-election market rally stalled.
Nvidia’s chips are considered the gold standard in the AI space, and its stock has risen nearly 200% this year, overtaking Apple (NASDAQ:) to become the world’s largest company by market capitalization.
Analysts expect NVIDIA’s third-quarter revenue to rise more than 80% to $32.9 billion, but say the company’s new Blackwell AI chips overheat when connected to customized server racks. There are reportedly problems, The Information reported on Sunday.
The company is working with its suppliers to modify rack designs to alleviate overheating issues. The AI chip giant has already delayed shipments of Blackwell by a quarter due to a design flaw that has since been fixed.
2. Futures mix. Attention focuses on major corporate performance
U.S. stock futures started the week mixed on Monday, reflecting earnings results from several major companies and comments from a series of Federal Reserve officials.
By 03:50 ET (08:50 GMT), the contract was down 135 points, or 0.3%, but up 8 points, or 0.1%, and up 145 points, or 0.7%.
Three major indexes fell last week after Federal Reserve President Jerome Powell warned that the U.S. central bank was in “no hurry” to cut rates further, paring recent highs seen in the wake of Donald Trump’s election victory. retreated from.
Nvidia’s earnings will be in the spotlight this week (see above), but announcements from Walmart (NYSE:), Lowe’s Companies (NYSE:) and others are also expected to provide new insight into the strength of consumer spending. You will get it.
So far, 93% of companies have reported earnings, with three-quarters reporting positive EPS surprises and 61% reporting positive earnings surprises, according to FactSet data. are.
Investors will also have the opportunity to hear from several Federal Reserve officials, including Chicago Fed President, Kansas Fed President, and Cleveland Fed President Beth Hammack.
3. The Bank of Japan remains vague about when to raise interest rates
The Japanese yen fell against the dollar on Monday after the Bank of Japan governor declined to provide specific guidance on when to raise interest rates.
By 03:50 ET it was trading 0.4% higher at 154.88 from Friday’s low of 153.86 after Japan’s Finance Minister Katsunobu Kato warned of possible intervention.
Ueda, speaking directly about monetary policy for the first time since Donald Trump won the US presidential election, reiterated that interest rates will continue to rise slowly if the economy develops in line with the central bank’s forecast.
But he did not say whether there would be a rate hike in December, disappointing those who thought his speech was designed to make policy points.
4. “We still have a long way to go.”
Bitcoin, the world’s most popular digital currency, continued to trade above $90,000 on Monday, benefiting from Donald Trump’s election victory and the prospect of a loosened regulatory environment.
By 3:50 ET, Bitcoin was trading 1.2% higher at $91,996.
The world’s largest cryptocurrency has been one of the most high-profile moves in the week since the election, rising more than 30% since Nov. 5 to a high of $93,480.
President-elect Donald Trump, once a cryptocurrency skeptic, has pledged to create a national Bitcoin reserve and make the United States a global hub for the cryptocurrency industry.
ARK Invest’s Cathie Wood said in a Nov. 15 CNBC interview that cryptocurrencies still have a “long way to go,” and ARK was the first public asset to gain exposure to Bitcoin in 2015 at $250. He pointed out that it was a management company.
Wood said continued momentum will come from “deregulation,” which he said is one of the most important things he expects from the new US administration.
“In the base case, we have a 2030 target, which is about $650,000, but in the bull case, it’s between $1 million and $1.5 million,” Wood said, reiterating his price forecast for the next five years.
5. Poor hands pay off early.
Oil prices fell slightly on Monday, regaining some of their previous gains, after fighting between Russia and Ukraine escalated over the weekend amid continued concerns about a supply glut next year.
By 3:50 ET, futures (WTI) were down 0.2% at $66.81 per barrel and the contract was down 0.1% at $71.03 per barrel.
In response to Russia sending North Korean ground forces to supplement its own forces, President Joe Biden’s administration has announced that Ukraine is using US-made weapons to strike deep into Russia, according to a report on Sunday. allowed to use.
So far, the war has had little impact on Russian oil exports, but the oil market could see more geopolitical bidding if Ukraine targets more oil infrastructure.
The benchmarking deal came last week after weak data from China and the International Energy Agency predicted that global oil supply will easily exceed demand in 2025, even if production cuts by top producer groups continue. , which fell more than 3%.
