A Wild Ride in the Tech World: Nvidia’s Shovels and Binance’s Guilty Plea
Early Market Volatility Nvidia Stock Experiences a Rollercoaster After-Hours
Nvidia shares hit turbulence after market close
A look at the day ahead in European and global markets from Wayne Cole.
The tech world has been nothing short of thrilling lately, with Nvidia sparking the attention of investors. In AI tech terms, Nvidia is like the only company selling shovels during a gold rush. Their Q3 earnings came in way above expectations, and their forecast for Q4 is equally sunny. But with bullish expectations that could practically touch the moon, even a slight dip in their stock price makes headlines.
Nvidia did admit that sales to China have taken a hit due to Washington’s restrictions on tech transfers. But fear not, dear investors, because the company expects their strong growth in other regions to more than make up for it. This news, however, triggered some wild swings in after-hours trading. Can you believe their stock sank under $475.00 at one point? That’s a move so dramatic, it’s like a rollercoaster ride with each dollar representing a whopping $2.5 billion in market cap for the $1.2 trillion company.
The excitement continued throughout Asian trading hours, with volumes so large and orders so backlogged that the price couldn’t make up its mind. It was jumping here and there, like a kangaroo on a sugar rush. As of now, the stock is down 1.7% from the official close, with the last indicator at $490.75.
Now, let’s move on to the other big tech news of the day. Hold onto your hats! Binance’s chief, Changpeng Zhao, has unexpectedly pleaded guilty to breaking U.S. anti-money laundering laws. And if that’s not enough drama for you, get this: the settlement amounts to a whopping $4.3 billion. Zhao even had to step down and will be paying a $50 million fine. But wait, there’s more! He may also face some quality time behind bars. Who would have thought that the world of cryptocurrency could be this exhilarating?
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Leaving the tech world behind, let’s talk about the Fed’s latest meeting. It seems like the meeting minutes didn’t really change much when it comes to policy outlook. The FOMC is firmly on hold, and it would take an inflation shock to shake things up. In fact, all participants agreed that policy would have to remain tight for the foreseeable future.
There’s been a lot of chatter about the bond market scare that happened between September and October, causing financial conditions to tighten. However, since that meeting, 10-year yields have dropped by more than 50 basis points. You’d think that would push the Fed to stay high for longer, right?
Well, the market seems to have a different opinion. The odds of a rate cut in March are priced at only 29%, while May has a more likely chance of easing at 60%. Futures suggest that we might see around 93 bps of cuts by 2024. It’s like the market is saying, “Hey Fed, we’re not totally convinced!”
In other news, Treasury 10-year yields managed to sneak up 1 basis point, not straying too far from the recent low. Major currencies also remained relatively stable. Ah, but the plot thickens! China’s central bank decided to set another firm fix for its yuan, perhaps signaling that they are dead serious about stopping its decline.
Meanwhile, Sweden’s central bank is about to have a major decision to make. Will they or won’t they hike again? It’s a close call. Some ANBLEs believe they will, while market pricing leans against it. If they decide to hold steady, it could be seen as the end of the cycle, which might put pressure on the crown. Oh, the suspense is killing us!
Here are some key developments that could shape the markets today:
- Euro Zone consumer confidence flash for Nov
- Riksbank holds monetary policy meeting
- British finance minister Hunt releases Autumn Statement
- Appearances by ECB’s Centeno and board member Elderson
- Fed Bank of Cleveland President Mester speaks
- Speech by Bank of Canada Governor Macklem
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That’s it for the thrilling ride in the tech world! Don’t forget to buckle up and stay tuned for more excitement. Are you a fan of Nvidia’s “shovels”? Or perhaps you’re shocked by Binance’s guilty plea? Share your thoughts in the comments below!
Disclaimer: The above content is for informational purposes only and should not be construed as financial advice. Always do your own research and consult with a qualified professional before making any investment decisions.
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