Global markets showed mixed signals on Monday as investors prepared for key developments, including Nvidia's earnings report, Bitcoin's ongoing surge, and uncertainty around the Bank of Japan's rate hike timeline.
1. Nvidia's earnings could shape market sentiment
Chipmaker Nvidia is set to release its Q3 earnings this Wednesday. This report is seen as a critical indicator for crypto predictions tied to the AI-driven tech boom. Nvidia's dominance in AI-related chip manufacturing has propelled its shares by 200% this year, making it the world's most valuable company.
While analysts forecast an 80% jump in Q3 revenue to $32.9 billion, reports of overheating issues with Nvidia’s new Blackwell AI chips have raised concerns. Design flaws in these chips had already delayed their release. The outcome of this earnings call could influence broader tech stocks and investor appetite for equities.
2. Mixed signals in U.S. futures
U.S. futures reflected a cautious market mood, with Dow futures falling by 0.3%, while Nasdaq futures rose 0.7%. Investors are balancing optimism about tech sector performance with comments from Federal Reserve officials, which could provide clarity on economic policy.
Additionally, earnings from companies like Walmart and Lowe's will shed light on consumer spending trends, crucial for market forecasts. FactSet data shows that 75% of S&P 500 companies have reported positive earnings surprises so far.
3. Bank of Japan stays vague on rate hikes
The Japanese yen weakened against the U.S. dollar as BOJ Governor Kazuo Ueda avoided providing specific timing for rate hikes. His comments suggested gradual adjustments depending on economic conditions, disappointing those expecting a more decisive stance.
This uncertainty complicates crypto market predictions tied to forex movements, as fluctuations in the yen often influence global trading strategies.
4. Bitcoin maintains its rally
Bitcoin continued its impressive climb, trading at $91,996 on Monday, driven by optimism around regulatory changes under the new U.S. administration. The cryptocurrency has gained over 30% since November 5, setting a record high of $93,480.
Cathie Wood of ARK Invest reiterated her price prediction for Bitcoin, projecting a base case of $650,000 by 2030, with a bullish scenario exceeding $1 million. She emphasized that regulatory relief could drive the next wave of crypto adoption.
5. Oil prices edge lower amid supply concerns
Crude prices dipped on Monday despite geopolitical tensions in Eastern Europe. Reports of increased military activity between Russia and Ukraine have yet to significantly disrupt Russian oil exports.
However, the International Energy Agency's recent forecast points to a global oil supply surplus by 2025, even if production cuts from major suppliers persist. WTI crude fell 0.2% to $66.81 per barrel, while Brent dropped 0.1% to $71.03.
