Markets Cheered Fed Chair Powell's Big Speech—How Will They React To Nvidia Earnings?
~2.5 mins read
The market in recent weeks has been gripped by uncertainty about the state of the economy and the outlook for interest rates. Fed Chair Jerome Powell on Friday put much of that uncertainty to bed when he signaled the central bank would begin cutting interest rates at its next meeting in September.
Now, Wall Street turns its attention to Nvidia (NVDA). The artificial intelligence chipmaker will report second-quarter earnings after markets close on Wednesday, and its report comes at a critical time for the AI craze that has propelled markets to record high after record high this year.
Nvidia, the undisputed star of the AI rally, is the last of the Magnificent Seven to report, and its results could be a big event for markets.
With a market capitalization of more than $3 trillion, the chipmaker has outsized influence in capitalization-weighted indexes like the S&P 500. As such, the performance of the S&P 500 and Nvidia stock tend to be strongly correlated around its earnings reports, as seen in the graph below from a recent Bank of America Securities note.
Markets may be on edge heading into Nvidia’s earnings, especially after a string of disappointing reports from its Magnificent Seven peers. Even as most of the group reported strong earnings growth, their stocks stumbled as Wall Street focused on pockets of weakness and expressed concern about surging AI spending.
Nvidia has reported triple-digit-percentage earnings and sales growth in each of the last four quarters and is expected to do so again on Wednesday. And in each of the last six quarters, it has reported better-than-expected earnings per share and revenue, as well as raised its earnings outlook.
What’s more, massive spending on AI infrastructure, including Nvidia chips, has been one of the defining narratives of this past round of corporate earnings. Cloud hyperscalers like Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOGL) spent more than $50 billion on infrastructure in the second quarter, a more than 50% increase from the same period a year ago.
With Nvidia accounting for an estimated 70% to 95% of the AI chip market, that spending has surely been a boon to the company’s top line.
And yet the stock, along with its Magnificent Seven peers, has run into some resistance in recent months. Shares fell more than 25% through July and early August as investors rotated out of big tech into small-cap stocks that stand to benefit most from imminent interest rate cuts.
Though the stock has since recovered to trade just 6% off its June all-time high, it continues to exhibit notable volatility. Shares climbed more than 1% at the open on Monday before taking a turn and falling as much as 3.8% about an hour into the session.
Beyond earnings, the stock and its tech peers also remain vulnerable to sell-offs amid substantial economic and geopolitical uncertainty. The upcoming presidential election and conflicts in the Middle East could compound the seasonal weakness stocks usually experience in September.
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Choosing a career can be a daunting task, especially with the numerous options available. However, by considering the following five keys, you can make an informed decision that sets you up for success and happiness in your professional journey.
*1. Align with Your Passions and Interests*
Your career should be a reflection of your passions and interests. When you enjoy what you do, you're more likely to be motivated, engaged, and fulfilled. Take time to reflect on what activities you enjoy, what subjects you're interested in, and what problems you're eager to solve.
*2. Assess Your Skills and Strengths*
Identify your strengths, skills, and abilities. What are you naturally good at? What skills have you developed over time? Consider how your skills align with the job requirements and industry demands. Focus on careers that play to your strengths, and be open to developing new skills.
*3. Research the Job Market and Industry Trends*
Understand the job market, industry trends, and growth prospects. Research the demand for certain skills, the average salary range, and the career progression opportunities. This will help you make an informed decision about your career choices.
*4. Evaluate Work-Life Balance and Culture*
Your career should complement your personal life, not consume it. Consider the work-life balance, flexibility, and culture of the organization or industry. Think about what matters most to you: autonomy, teamwork, creativity, or stability.
*5. Consider Long-Term Growth and Development Opportunities*
Your career is a journey, not a destination. Look for opportunities that offer growth, development, and advancement prospects. Consider mentorship programs, training opportunities, and networking possibilities.
*Additional Tips:*
- Seek advice from professionals in your desired field
- Job shadow or intern to gain hands-on experience
- Reflect on your values and priorities
- Be open to exploring different paths and industries
- Prioritize your mental and physical well-being
*Conclusion:*
Choosing a career is a personal and important decision. By considering your passions, skills, job market trends, work-life balance, and growth opportunities, you can make an informed choice that sets you up for success and happiness. Remember, your career is a journey, and it's okay to explore and adjust along the way. Take your time, stay open-minded, and prioritize your well-being.
Life After Graduation: What Undergraduate Students Need To Know*
~1.2 mins read
*Life After Graduation: What Undergraduate Students Need to Know*
As undergraduate students approach graduation, they often wonder what life holds beyond the campus. The transition to post-graduation life can be daunting, but with preparation and knowledge, it can be a smooth and exciting journey.
*Key Takeaways:*
1. *Career Uncertainty is Normal*: It's okay not to have it all figured out. Many graduates take time to explore different fields and careers before finding their passion.
2. *Networking is Key*: Build relationships with professors, peers, and professionals in your industry. These connections can lead to job opportunities, mentorship, and valuable advice.
3. *Skills Over Degree*: Employers value skills like communication, problem-solving, and teamwork. Focus on developing these skills through internships, projects, and extracurricular activities.
4. *Financial Literacy*: Understand budgeting, saving, and investing. Make smart financial decisions to set yourself up for long-term success.
5. *Continued Learning*: The job market is constantly evolving. Stay adaptable and committed to lifelong learning to stay ahead.
6. *Self-Care Matters*: Prioritize mental and physical well-being. A healthy mind and body are essential for navigating life's challenges.
7. *Exploration is Okay*: It's okay to try new things, take risks, and explore different paths. This is a time for discovery and growth.
*Prepare for the Unknown*:
- Develop a growth mindset
- Build a strong online presence (e.g., LinkedIn)
- Create a budget and savings plan
- Seek mentorship and guidance
- Stay open to new opportunities and experiences
By understanding these essential insights, undergraduate students can better navigate the transition to life after graduation and set themselves up for success in their careers and personal lives.
Successful people often seem to have an edge, a secret to their accomplishments that sets them apart from others. While there's no single formula for success, research and studies have revealed some common traits and habits that contribute to their achievements. Here are 5 secrets about successful people:
*1. They Set Clear Goals*
Successful people set specific, measurable, and attainable goals. They define what success means to them and create a roadmap to achieve it. This clarity of purpose helps them focus their efforts, prioritize tasks, and stay motivated. By setting SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals, they create a framework for success.
*2. They Embrace Failure as a Learning Opportunity*
Successful people don't fear failure; they see it as a chance to learn and grow. They understand that mistakes are an inevitable part of the learning process and that every failure brings them closer to their goals. This mindset allows them to take calculated risks, experiment, and innovate, leading to breakthroughs and new opportunities.
*3. They Prioritize Self-Care and Wellness*
Successful people recognize the importance of physical and mental well-being. They prioritize self-care, exercise regularly, eat a balanced diet, and get enough sleep. By taking care of their bodies and minds, they maintain the energy, focus, and resilience needed to tackle challenges and achieve their goals.
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