📆 Tuesday, May 21
► European stock futures declined, influenced by shifts in investor focus towards Nvidia's upcoming earnings report. Risk sentiment soured after Jamie Dimon, arguably the single most significant figure in global finance, gave his clearest indication yet that he is thinking about stepping down from JPMorgan. His comments on the impending headwinds for equities and JPMorgan's currently unattractive share price for buybacks also weighed on risk sentiment and led to heavy selling in JPM. Contracts for the STOXX Europe 600 fell 0.35%, reflecting the cautious sentiment.
► US markets closed mixed on Monday as investors sought clarity on the Federal Reserve's interest rate strategy. US futures held steady, with the S&P 500 and Nasdaq relatively unchanged. Wall Street futures and many components of the S&P 500 hit 52-week or all-time highs yesterday, but suddenly faced headwinds from Dimon's rather pessimistic assessment of the current state of the market. Market participants are anticipating the release of FOMC minutes and several speeches from Fed officials, which could provide further direction on monetary policy. On top of this, investors are awaiting the upcoming earnings report from Nvidia on Wednesday. The AI chip giant is up over 90% for the year. Analysts remain upbeat on Nvidia.
► Asian equities retreated, breaking a seven-day winning streak, with significant losses led by Li Auto following weak earnings. The Chinese economic landscape remains challenging, highlighted by minimal turnaround signs in the property sector. Local governments reported the lowest revenue from land sales in eight years, exacerbating fiscal pressures.
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