- UK investors start the week with a cautious tone
- US markets take a breather after Friday’s rally
- Investors gear up for Nvidia earnings tomorrow
- US government becomes Intel’s largest shareholder
- Gold climbs as Trump fires Fed Governor
- Oil prices come back a touch after yesterday’s pop
Matt Britzman, senior equity analyst, Hargreaves Lansdown:
“UK investors are returning from the bank holiday in a cautious mood, with the FTSE 100 opening lower this morning. Attention this week will be on domestic data, including housing figures later in the week, alongside a busy US calendar with key results from Nvidia that will have a far-reaching impact.
Wall Street took a breather yesterday evening after Friday’s rate cut rally sent stocks soaring. The S&P 500 dipped 0.4%, with low trading volumes not too surprising given the UK bank holiday, and US Treasuries gave back some of Friday’s gains, pushing the 10-year yield to 4.28%. Attention now turns to a packed economic calendar and a pivotal earnings report from AI bellwether Nvidia.
Expectations are sky-high, with Nvidia’s revenue forecast to surge 55% – already ahead of company guidance – though Nvidia has a track record of topping its own numbers. Investors will be laser-focused on the resumption of China sales and forward guidance, seeking clarity on just how much Chinese revenue is back in play. US earnings have been strong so far, but this is the big one – and there’s every reason to expect another knockout from Nvidia tomorrow evening.
Intel has sealed a deal with the US government, securing nearly $9 billion in funding in exchange for an equity stake worth about 10%, making the US taxpayer the company’s largest shareholder. The cash injection will help finance Intel’s costly US foundry buildout, aimed at onshoring advanced chip production. On the face of it, the deal looks reasonable for both sides but given that these funds were originally expected to come free under the CHIPS Act, it’s hard to ignore that Intel may have gotten a worse deal here.
Gold climbed to around $3,370 an ounce, its highest in two weeks, as political uncertainty rattled markets after President Trump abruptly fired Fed Governor Lisa Cook, stoking concerns over central bank independence. Expectations of a September rate cut – currently priced at 82% – are also underpinning prices, with investors eyeing Friday’s PCE inflation data for further clues on policy direction.
Brent crude oil slipped to $68.40 a barrel this morning, after Monday’s rally, which had lifted prices to a three-week high on fears of supply disruptions from fresh Ukraine drone strikes on Russian energy assets. Traders are weighing renewed geopolitical tensions, looming US sanctions on Moscow, and tariffs on India over Russian crude purchases, set to kick in tomorrow.”
