Hello traders, and welcome to Thursday. Today, the market is eagerly awaiting the reaction to NVIDIA’s earnings, which were published yesterday after the market closed. The earnings exceeded expectations, bringing a slight bullish sentiment to the market. In pre-market trading, NVIDIA is set to open slightly higher, but with a gain of less than 1%, it indicates a cautious approach from investors despite the positive earnings surprise.
This cautious optimism is helping to support a recovery attempt in the broader market. American futures are in the green, reflecting a positive start for Wall Street, while European indices are struggling, weighed down by ongoing trade tensions between the European Union and the U.S. This geopolitical risk is capping the upside potential for European stocks, even as the global tech sentiment receives a boost from NVIDIA.
Looking at the economic calendar, the key focus today is on U.S. Prelim GDP, expected at 2.3%, which will be published alongside Unemployment Claims. Additionally, we will receive Durable Goods Orders from the U.S., which could influence market sentiment and currency movements later in the day.
On the currency market, we are seeing a rebound in pairs with the Japanese Yen, with Yen crosses climbing slightly higher. The American Dollar is also gaining, reflecting renewed demand as traders anticipate positive GDP data. The Canadian Dollar is showing strength as well, buoyed by recovering oil prices, although the overall sentiment on commodities remains weak.
Speaking of commodities, they are struggling significantly, especially in the final week of February. Natural gas is experiencing a sharp decline, continuing its downward trajectory. Oil is attempting a modest bullish bounce today, but the week remains negative overall, reflecting persistent selling pressure.
In the metals market, gold and silver are also trending lower, showing weakness across the board. The bearish sentiment in commodities is largely attributed to renewed dollar strength and profit-taking, as investors rotate out of safe havens.
Today’s session is pivotal, as the reaction to NVIDIA’s earnings and the U.S. GDP report will set the tone for the rest of the week. If the economic data supports the bullish sentiment, we could see a continuation of the recovery attempt, but geopolitical risks and trade tensions may limit the upside potential, especially for European indices.