Bumper NVIDIA Earnings Lift Sentiment

 Tech stocks are marching higher today on the back of a bumper set of earnings from NVIDIA yesterday which helped bolster sentiment further. There was plenty of anticipation in the market ahead of the release given the current hype around AI and traders were eyeing a positive set of results from the group. AI bulls and NVIDIA stockholders were not disappointed as the group posted Q2 EPS of $2.70 vs $2.08 expected on revenues of $13.507 billion vs $11.186 billion expected. When compared with the same quarter a year prior, earnings and revenues were seen rising 30% and 21% respectively. Additionally, a strongly optimistic set of guidance for the current quarter added to bullish sentiment on the day.

Weak US Data Boost Stocks

The Nasdaq was seen soaring more than 150 points on the day as traders digested the results. The index is now up more than 6% off the recent lows and looks poised for further gains while above the 15177.5 level. Yesterday’s weaker-than-forecast PMI results also helped lift gains. Softer factory and non-factory readings are seen as diluting the chances of the Fed hiking again next month, in turn boosting stock sentiment. Looking ahead today, focus will be on US durable goods and unemployment claims which should see stocks gaining further if any data undershoots forecasts.

Technical Views

Nasdaq

The rally off the August lows has seen the market breaking back above the 15177.5 level and moving back into the upper half of the bull channel. While above here, and with momentum studies pushing higher, the focus is on a continuation upward with 16010.4 the main objective for bulls.