The Each day Breakdown appears to be like at Nvidia amid its GTC occasion and the Fed forward of its rate of interest determination and financial outlook replace.
Wednesday’s TLDR
It’s Fed Day!
NVDA’s GTC Occasion
Tech appears to be like for stability
What’s taking place?
Yearly, Nvidia hosts its GTC occasion in San Jose, as buyers sit up for CEO Jensen Huang’s keynote deal with. In prior years, it wasn’t unusual to see Nvidia shares rally into the occasion, however not this 12 months.
The inventory was down about 22% from its highs going into yesterday’s keynote and it failed to achieve momentum afterward, ending decrease on the day by 3.4%. Bulls have been hoping that Nvidia would assist stoke a rally, giving a carry to Wall Avenue for the reason that inventory is within the Dow, Nasdaq 100, and S&P 500.
Nvidia’s GTC occasion highlighted two issues:
First, it’s nonetheless the undisputed chief in AI. Second, regardless of that, short-term momentum is like being caught within the mud. The inventory — and tech typically — simply can’t appear to achieve traction.
Possibly right now’s Fed announcement will assist.
At 2 p.m. ET, the Fed is predicted to announce no change in rates of interest and launch its up to date quarterly financial outlook (formally known as the Abstract of Financial Projections).
At 2:30 p.m. ET, Chair Powell will take the rostrum and undergo a spherical of Q&A. The present volatility is probably not because of the Fed, however buyers are hoping that Powell & Co. may help ease buyers’ present worries in regards to the financial system.
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The setup — Nasdaq 100
Wanting on the Nasdaq 100 through the QQQ ETF, it’s been a nasty slide thanks largely to mega-cap tech shares performing so poorly.
From its excessive in February to its low lower than one month later, the QQQ stumbled 13.75%. This fast selloff arrange a steep downtrend resistance line, drawn in on the chart beneath with a blue line. It additionally despatched the QQQ beneath a key assist stage close to $500, in addition to its 200-day shifting common.
Now that the QQQ has technically cleared downtrend resistance, bulls are hoping to see the latest lows close to $465 maintain as assist. These lows will seemingly be on watch right now and this week, given the emphasis that buyers placed on Fed occasions.
If these lows finally maintain within the days and weeks forward, buyers will search for an additional rebound. Whereas it might be a troublesome highway forward, they might seemingly search for the QQQ to push again towards the 200-day, then hopefully the $500 stage.
If the lows do not maintain, then extra promoting strain may ensue as bearish momentum doubtlessly re-accelerates.
Choices
For choices merchants, calls or bull name spreads could possibly be one strategy to speculate on assist holding. On this state of affairs, choices patrons restrict their threat to the value paid for the calls or name spreads, whereas making an attempt to capitalize on a bounce within the inventory.
Conversely, buyers who count on assist to fail may speculate with places or put spreads.
For these trying to be taught extra about choices, contemplate visiting the eToro Academy.
What Wall Avenue is watching
GM – In yesterday’s keynote, Nvidia’s Jensen Huang stated, “The time for autonomous autos has arrived,” whereas additionally asserting a strategic collaboration between Nvidia and Normal Motors. The sentiment round autonomous driving may be giving Tesla a lift this morning, with shares larger by greater than 3% in pre–market buying and selling. We’ll see if GM inventory can clear resistance right now.
ETH – Whereas Bitcoin is up about 1% this morning, Ethereum is up greater than 4%. Relative to BTC, ETH has actually struggled in latest buying and selling, falling within the prior three weeks and shedding about one-third of its worth in that stretch.
SLV – Whereas silver isn’t hitting new document highs like gold, it’s doing fairly nicely, with the SLV ETF up greater than 17% thus far this 12 months — and barely outpacing the 15.6% acquire for the GLD ETF to date in 2025. Take a look at the charts for SLV.
Disclaimer:
Please be aware that as a result of market volatility, a number of the costs might have already been reached and eventualities performed out.
