The S&P 500 (^GSPC) and Nasdaq (^IXIC) closed at record highs ahead of Nvidia's (NVDA) Q1 results. Yahoo Finance's Josh Schafer joins Asking for a Trend to discuss the biggest takeaways of the trading day.
AI is dominating the market and the utility sector is booming as demand for new data centers increases. Utilities and energy have outperformed the S&P 500, and AI is a major theme in earnings across all sectors.
All eyes are on Nvidia, which is scheduled to announce its financial results after the bell on Wednesday. The semiconductor company faces sky-high earnings expectations as AI competition intensifies, and it closed at a record high on Tuesday.
Finally, Schaefer pointed to optimism about the likely approval of the Ether ETF by the SEC as the main takeaway from this trading day. Bitcoin ETFs were approved earlier this year, and renewed enthusiasm for Ethereum sparked a significant rally.
For more expert insights and the latest market trends, click here to watch the full episode of Seeking Trends.
This post was written by Melanie Leal
video transcript
The S&P 500 and NASDAQ had a record day, and the video just before the earnings release was released.
Josh Schafer explains trading points.
Joshua Josh This week is all about “I”.
We can't talk about anything without talking about I. We've been talking a lot about how I and utilities are intertwined these days, especially today as we look at some of the moving companies on the market that are doing utility weeding.
Also me and energy.
So if you look at the best performing sectors in the S 500 and P 500 this year, two of them are utilities and energy.
It outperforms the S and P 500.
And what's interesting to see is, if you look at the earnings calls here, Josh, companies are kind of starting to talk more about AI.
This is interesting and was highlighted by the Goldman Sachs energy company's mention of I.
This is a little “I” about it all.
This is the fourth quarter.
Less than 20% of companies are talking about I Let's fast forward to the first quarter of earnings, that quarter. I looked into more than two-thirds of the companies talking about I. So people are talking about I like energy trading. , right?
How are you going to power the GP US?
Consumes considerable power.
Well, companies are saying, “Yes, that will benefit us.”
People also believe it will benefit companies in the utility sector.
This is what I'm focused on heading into tomorrow's NVIDIA Irvings report.
OK, if you think about NVIDIA, a lot will be said about the demand for AI chips.
But when they talk about that demand, what does that mean for the kind of broad bull market we've seen in other sectors?
And I think that after these earnings, in the same way that chips typically move with NVIDIA and technology moves with NVIDIA, one way or another or other sectors will move as well. Will we start to see other pockets of interest in the market? Also, a little later on your point, I kind of trade off that tendency.
Josh, let's say in the video report of tomorrow's conference call.
CO's Jensen Wong seems very bullish about the quarterly head.
Will it have any positive ripple effects on some energy names?
It's a public project, right?
Yeah.
At some point, if they're going to sell, if they're going to keep selling GP US more and more.
Well, that means more and more power.
In other words, I don't know what specific companies have strategies, but I think we can discuss them.
right?
Which companies will support it?
But at some point, that power has to come from somewhere.
Morgan Stanley announced that these GP USs consume 50 times more power than other GP USs.
So these new GP USs incorporate a lot of power.
Go for your next Schaefer takeout.
Another point is that this is simply a make-or-break moment for NVIDIA.
And when you look at the market today, you wonder where the catalyst was.
There was a bit of a drift, trying to find direction.
It feels like AC PI week, right?
The inflation print tomorrow, the jobs report prints on Friday, and so on.
But this week's NVIDIA earnings are a moment where you see the option volatility heading into this and the kind of things they're pricing in.
NVIDIA is pricing in an 8% increase after earnings.
What was most interesting to me was how inaccurately some of the pretty large moves have been priced over the last few quarters, but the videos didn't always confirm that.
You are not a good forecaster.
It's not a good predictor.
And I think it would be something like this A. I'll replace it.
It's hard to see where it goes next, and when investors have had enough and the video closes at an all-time high, the stock closes at a record high and delivers very solid returns. It's not abnormal though. , maybe even raise the guidance.
However, the reason why the stock price still does not go up is because, again, the stock price is already at an all-time high, and 90% of this year already has not gone up automatically, right?
Now let's look at the third point.
Something is a little different.
Optimism in Ethereum, Ethereum ETF.
Josh.
So, this is an optimistic view on the likelihood of SEC approval.
And I found this graph interesting.
So it is clear that Bitcoin ETF S was approved earlier this year.
If you look at January, Bitcoin actually fell a little bit initially on this news, but it's been up very solidly since then, and Bitcoin is shown in purple here. We're hearing a lot of positive things about the inflows into these ETFs.
And I think it was interesting for me to cover how cryptocurrencies are moving based on real news today.
So when you see the light blue line, it's right next to me. Look, look at this big jump.
Ethereum had lagged Bitcoin by 20% for the year to date, but it just rebounded by 20% on the day.
So it's a massive move for Ethereum.
And if you're wondering what, fundamentally, is the value of ETF S for approval?
Yes, the market says it's worth this much.
It's not a bad thing.
Gary vs. S EC he didn't want that spot.
Bitcoin ETF has now been sued.
So, is a lawsuit necessary to get your spot?
Theory in ETFs.
And even if it did, it would take quite a long time.
right.
So the market is actively pricing in something to suddenly drop in price one day and set a nominal RS.
Joshua.
thank you.
