📆 Wednesday, November 21
► European markets are pressured by geopolitical concerns after Russia fired an intercontinental ballistic missile for the first time in this war during an overnight attack over the city of Dnipro. The message that Russia wants to send is that it is has greater capabilities than previously displayed and is considered by many as Russian escalation in this ongoing war. The Euro Stoxx 600 trading lower (- 0.25%). Nvidia reported yet another very strong earnings report but it's revenue forecast disappointed some investors. European equities showed limited exposure compared to tech-heavy Asian counterparts. Investors continued to monitor geopolitical risks, including potential further escalating tensions in the Russia-Ukraine war.
► US markets were cautious as Nvidia's very strong third quarter results and almost 100% year-on-year revenue growth failed to positively surprise extremely high market (shadow) expectations. Despite delivering strong results, Nvidia’s revenue guidance (which, however was also above analysts expectations) led to a 2.5% drop in its shares, which weighs on Wall Street (S&P 500 at -0.3% / Nasdaq -0.4%). Production and engineering costs of the chips will weigh on profit margins according to Nvidia CEO Jensen Huang – which was the small little negative detail in a very strong earnings report that caused some selling. However, SmartTrader Chief Analyst Robert Lindner emphasised that Nvidia's (and the general) AI growth story remains intact and a stronger dip can serve as an entry point for medium to long-term investors.
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