It’s been an eventful mid-week session.
U.S. markets rallied strongly on Tuesday as global trade tensions showed signs of easing. The S&P 500 closed up 2.0%, while the Nasdaq 100 jumped 2.3%. Optimism stemmed from reports that the EU is fast-tracking trade negotiations with the U.S., which helped calm fears of a broader tariff escalation.
But the real test is coming today.
What to watch
1. Nvidia Earnings (Post-Market)
Nvidia reports Q1 results today, and the entire AI sector is bracing for impact. With expectations sky-high after last quarter’s blockbuster print, anything short of exceptional may lead to volatility. Analysts are focusing on:
- AI chip demand in cloud and enterprise
- Data center revenue growth
- Forward guidance on margins
Even minor misses on revenue or gross margins could spark sharp reactions, especially given the stock’s parabolic run.
2. FOMC Meeting Minutes (8:30 PM IST)
The Fed’s tone has been mixed lately—some members hinting at rate cuts, others holding firm on higher-for-longer. These minutes will be dissected for:
- Inflation sentiment
- Any shift in neutral rate thinking
- Timeline signals for policy change
Markets have been betting on cuts in late 2025, but sticky inflation might push that further out.
What’s Coming Next:
What’s Coming Next:Thursday (May 29)
- Revised Q1 GDP numbers
- Initial jobless claims
Friday (May 30)
- Core PCE Inflation – the Fed’s favorite inflation gauge
What This Means for Investors:
Short-term momentum is strong, but conviction remains fragile. Volatility could spike if Nvidia disappoints or the Fed stays hawkish. For long-term investors, it’s a moment to observe—not react emotionally.
What’s your move?
- Are you bullish post-earnings or waiting for PCE data?
- How are you positioning for the next Fed pivot (or delay)?
Drop your thoughts below.
Disclaimer: This post is for informational purposes only and should not be construed as investment advice. Please consult a registered advisor before making financial decisions.