Nvidia Set to Report Q3 Earnings Amid AI Boom

Chipmaker Nvidia, a leader in the AI-driven tech surge, will release its third-quarter earnings report after the market closes on Wednesday. The results are poised to serve as a barometer for investor sentiment toward technology stocks, AI-focused investments, and the broader equity market, especially after the recent post-election rally lost steam.

Nvidia's chips are considered the benchmark in the AI industry, fueling a remarkable 200% surge in its stock price this year. The company's market capitalisation has surpassed Apple, making Nvidia the world's most valuable publicly traded company. Its significant weight in the S&P 500 has been a major driver behind the index's record highs this year.

With high investor expectations, Nvidia's earnings could trigger short-term market volatility. Last week, analysts at Raymond James increased their price target for Nvidia from $140 to $170, emphasizing that any pullback from elevated expectations could present a buying opportunity.

Bitcoin and Crypto Market Surge: Record Highs and Growing Momentum

Bitcoin's price has skyrocketed 30% since the November 5 U.S. election, breaching the $90,000 mark for the first time. This rally has pushed the cryptocurrency market’s total value beyond $3 trillion—a milestone that equates to the combined market capitalisation of Tesla, Meta, and Berkshire Hathaway.

The surge is fueled by expectations of a more favorable regulatory environment under President-elect Donald Trump. Momentum is strong, with some analysts projecting Bitcoin could soon reach six figures. Trump, a former crypto skeptic, has pledged to establish a national Bitcoin reserve and position the U.S. as a global leader in the crypto space. However, questions remain about the feasibility and timeline of these ambitious promises.

U.S. Economic Highlights: Housing, Jobs, and Fed Insights

The U.S. economic calendar is relatively light this week but includes important updates on the housing market, with reports on building permits, housing starts, and existing home sales. Weekly jobless claims data and Friday’s PMI reports for manufacturing and services could offer insights into how companies are responding to proposed trade tariffs under the Trump administration.

Retail giants Walmart and Lowe’s will report earnings on Tuesday, providing clues about the health of consumer spending. Additionally, investors will hear from Federal Reserve officials, including Chicago Fed President Austan Goolsbee, Kansas Fed President Jeffrey Schmid, and Cleveland Fed President Beth Hammack, for guidance on the economic outlook.

UK Inflation: CPI Data and Central Bank Insights

The UK is set to release October Consumer Price Index (CPI) data on Wednesday, with economists forecasting a rise in the annual inflation rate to 2.2%, up from 1.7% in September. This would push inflation back above the Bank of England’s (BoE) 2% target for the first time in over three years.

Earlier this month, the BoE implemented a second 25-basis-point rate cut and signaled that further adjustments would be gradual as it assesses inflationary pressures, including those stemming from the government’s latest budget. BoE Governor Andrew Bailey and other officials are scheduled to address Parliament's Treasury Committee on Tuesday to discuss inflation and the monetary policy outlook.

Friday will bring additional UK economic data, including October retail sales figures and PMI reports for the manufacturing and services sectors.

(Sources: investing.com, reuters.com)