Nvidia Set to Make Waves as Bitcoin Soars and the Euro Falters

Chicago, IL – November 19, 2024 – Zacks.com has released the latest insights from its Analyst Blog, where analysts analyze current events affecting stocks and markets. Featured companies include Nvidia (NVDA), Tesla (TSLA), Meta (META), and Berkshire Hathaway (BRK.B).

Key Insights from Monday’s Analyst Blog

Nvidia’s Earnings on the Horizon

This week is crucial for investors:

· Chip giant Nvidia is set to release its quarterly earnings on Wednesday evening,

· Global PMI data is due out on Friday,

· Markets are still reacting to the results of the recent U.S. election.

· Traders are focusing on Bitcoin and the Euro.

Top Five Market Themes for Equity Traders

(1) Nvidia’s Anticipated Earnings Report on Nov. 20

As the earnings season wraps up, Nvidia stands out with its upcoming Q3-24 results. This company has become a key player in the AI sector, a space that has driven stock growth this year.

Nvidia’s stock has surged nearly +200% in 2024, allowing it to surpass Apple as the world’s most valuable company in October. Its significant influence on the S&P 500 contributes to the index’s record highs this year.

However, heightened expectations mean any disappointment could lead to concerns that excitement around AI has become unrealistic.

Analysts forecast Nvidia’s Q3 revenue may rise over +80% to $32.9 billion when it reports on Nov. 20, according to recent LSEG data.

(2) Bitcoin Nears the $100,000 Mark

Following President-elect Trump’s victory, Bitcoin has seen a remarkable increase in interest, sparking a rally among traders aiming for new highs. Since November 5, the cryptocurrency’s price has soared by +30%, reaching over $90,000 for the first time.

The total value of the cryptocurrency market now exceeds $3 trillion—comparable to the combined worth of Elon Musk’s Tesla, Meta, and Warren Buffett’s Berkshire Hathaway.

Light regulations in the U.S. have fueled investment, with exchange-traded funds (ETFs) attracting vast sums recently. According to LSEG data, the largest ETFs recorded a net influx of $3.5 billion in the week ending November 14—the highest figure since mid-March.

(3) The Euro’s Decline and Possible Parity with the USD

Rising fears of Trump’s tariffs are weighing on the Euro, which has fallen about -5% from one-year highs in September to around $1.054. Many analysts now predict that the Euro could reach parity with the U.S. dollar.

The latest report from the ZEW Institute shows a drop in German investor confidence. Additionally, there is a one in five chance that the European Central Bank will reduce rates by 50 basis points in December.

Despite these challenges, a weaker Euro could benefit exporters, and quickened rate cuts may promote bank lending and economic activity.

(4) Preliminary PMI Data Released on Friday

On Friday, preliminary PMIs from Europe and the U.S. will provide insights into global economic activity as Trump prepares to take office again in January.

These reports will likely show ongoing challenges in manufacturing, while the services sector remains more stable.

Separate challenges exist for each nation, including Germany’s economic struggles and uncertainties in the UK regarding hiring costs.

(5) Emerging Markets Facing Pressure

Indonesia is at a crossroads regarding its interest rates, with a decision expected on Wednesday. The central bank faces pressure to either lower rates or maintain current levels due to mixed signals from inflation and growth.

In a climate of a weakening rupiah, which has fallen significantly from its peak, rate adjustments will be closely scrutinized. Elsewhere, South Africa is likely to implement a 25-basis-point cut, while Turkey appears less likely to ease due to revised inflation forecasts.

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