Nvidia Earnings and Key US Economic Data Dominate Markets Amid Fed Rate Cut Hopes and European Jitters

Global financial markets are keenly focused on today’s events, Wednesday, August 27, as investors brace for the highly anticipated earnings report from AI chip behemoth Nvidia. The tech giant’s performance is expected to offer critical insights into the vitality of the artificial intelligence sector, which has been a primary engine for market gains throughout the year. Nvidia shares, after a dip last week fueled by concerns of an ‘overcooked’ AI market, showed resilience on Monday, climbing 1.0 percent.

This week’s market sentiment is heavily influenced by recent signals from Federal Reserve Chair Jerome Powell. Speaking last Friday at an annual conference, Powell hinted at a potential shift in the balance of risks, citing rising employment concerns and the possibility of rapid layoffs. Analysts have widely interpreted these remarks as a strong indication of a likely interest rate cut at the Fed’s September meeting, especially as inflation remains contained despite recent tariff impacts.

While Asian markets largely maintained gains following Powell’s comments, European indices experienced a late slump on Monday, particularly in Paris. This downturn was exacerbated by an announcement from French Prime Minister Francois Bayrou, who declared his intention to seek a vote of confidence in the National Assembly to push through his budget, introducing an element of political uncertainty into the region.

Looking ahead, investors are closely monitoring key US economic releases later this week. A crucial US GDP report is due on Thursday, followed by a significant inflation gauge on Friday. These reports will provide further clues on the trajectory of interest rates in the coming months.

In corporate news, Danish wind group Orsted saw its shares plunge 16 percent after the US government halted construction at a major offshore site. French pharmaceutical firm Valneva’s stock tumbled 22 percent following a US suspension of its chikungunya vaccine over serious side-effects. Conversely, sportswear manufacturer Puma’s shares surged 15 percent amid reports that France’s Pinault family is exploring the sale of their significant stake in the company.

阅读中文版 (Read Chinese Version)

Disclaimer: This content is aggregated from public sources online. Please verify information independently. If you believe your rights have been infringed, contact us for removal.