There was little movement in the interest rate market throughout the day and US stock markets responded with a quiet trading day. All three major indices declined moderately from the start and remained at roughly the same level throughout the trading day and up to the closing time.
The market received the minutes of the previous interest rate decision in the US without making any major movements.
Interpolation
On Monday, computer chip maker Nvidia — which has somewhat ridden the AI wave — climbed to a new top list. On Tuesday it was down a bit. This year, the share has increased by about 250 percent.
After the stock market closed on Tuesday, the giant company delivered results that crushed estimates. Number analysts were expecting revenue of $16.18 billion, according to CNBC. Nvidia reported revenue of $18.12 billion. This represents a growth of more than 200 percent compared to the same period last year.
“Our strong growth reflects broad platform changes in the industry from general use to accelerated data processing and generative AI,” says CEO Jensen Huang in a message.
The adjusted result per share was $4.02, compared to the expected $3.37.
In the fourth quarter, the company expects its sales to reach $20 billion, plus or minus 2%.
Despite beating expectations, Nvidia stock has held fairly steady in after-market trading.
In advance, Bank of America analysts believed that investors would pay attention, among other things, to the potential restrictions imposed by China and the competitive picture in the results presentation. If so, they’ve got an answer for that.
Nvidia wrote that export restrictions to China and other countries will have a significant impact on the fourth quarter. The company expects sales to these destinations to decline significantly during the quarter, but also believes this will be offset by strong growth in other regions.
-The stock market is once again priced to perfection. Maybe Nvidia’s results are “perfect” enough to push things up a notch. But since the stock market is more “overbought” now than it was “oversold” three weeks ago, investors will have to be very quick as we move into late November and into December, says Matt Maley, chief strategist at Miller Tabak. Co. He told Bloomberg News before presenting the results.
Pricing for perfection is an expression often used for stocks with a high valuation based on optimistic expectations of future development.
Svealand on the shipping boom: – It is not possible to build to death
“The price is final.”
After a few hours of trading on Tuesday, minutes of the US central bank’s (Federal Reserve) decision to keep its key interest rate unchanged at 5.25 percent and 5.5 percent at the beginning of the month were published.
In these minutes, the Fed explains the factors that form the basis of its interest rate decision. In the final minutes, it appears that the Fed has not given any signals about possible interest rate cuts and that members have agreed to take a cautious approach towards further interest rate decisions.
Throughout the year, the market found itself in a real interest rate quagmire, where the way out of the inflationary shock was not entirely clear. Now investors seem to have found the light. According to Marius Gunsholt Hof, chief economist at Handelsbanken, the market today is fully convinced that interest rates have reached their peak.
“The uncertainty that has existed for some time around the potential final increase has now been completely dismissed,” he wrote in his morning report on Tuesday.
Going forward, the headline numbers will determine the trend and they now show that the labor market is slowing down even more, where, among other things, you can again see a clearer rise in the number of new claimants for unemployment benefits, the economist believes. Not least because core inflation was lower than expected, which had a major impact on the market last week.
Now the interest rate market is pricing in up to two rate cuts by the end of July next year, with a 30 percent chance that the first cut could come as early as March, according to Hof.(conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using links that lead directly to our pages. No copying or other use of all or part of the Content may be permitted except with written permission or as permitted by law. For more terms see here.
This happens when you “call the bank”: – So we are very close to the maximum here
If you think the interest rate on your home loan is too high, or perhaps you are having difficulty repaying the loan, the advice is to contact your bank. But what can you really ask?
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