Recently, the stock market has shown significant volatility, especially during the summer. Events like Nvidia's reports have added additional tension to the market.
The Stock Market in Summer
The stock market often experiences fluctuations during the summer due to seasonal factors. Trading desks typically show less activity as many traders and investors are on vacation.
Nvidia's Reports and Their Impact
This week, all eyes were on Nvidia, one of the largest companies in the world. The hype was unreal, especially in anticipation of their financial report. Ultimately, Nvidia delivered impressive results: revenue more than doubled in three months, reaching $30 billion, with a forecast of $32.5 billion for the next quarter. However, the company's stock dropped 6% in after-hours trading, demonstrating how high investor expectations were.
Analysts' Opinions
JPMorgan analyst Harlan Sur pointed out that even small delays in the production of Nvidia’s new Blackwell chip won’t affect the high demand from cloud providers. Meanwhile, Ned Davis Research analysts believe that improving market breadth, where more stocks are rising than falling, usually indicates optimism about growth and profitability. However, it's worth noting that Nvidia's reports did not significantly affect Bitcoin, which dropped 10% on the daily chart.
The stock market remains volatile, especially in the summer months, and Nvidia's recent reports showed that even with impressive results, investor expectations can still be higher. Analysts' opinions highlight both the prospects and potential risks in the future.
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