Nvidia is nearing a $5 trillion market cap, with The Daily Breakdown taking a closer look at what’s driving the move — and the charts.
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What’s Happening?
Today is shaping up to be action-packed, especially in the afternoon. The S&P 500 and Nasdaq 100 both notched new record highs on Monday and Tuesday, setting the stage for what’s sure to be a busy finish to the week.
First Up: The Fed
At 2:00 p.m. ET, the Fed is expected to cut interest rates by 25 basis points — its second reduction this year following September’s move. Despite limited economic data and strong equity markets, the Fed remains concerned about a weakening labor market.
For investors, the focus isn’t just on today’s cut, but on what comes next. Will Chair Powell temper expectations for additional rate cuts in December or 2026? He’s typically noncommittal during the press conference, but all eyes will be on his comments starting at 2:30 p.m.
Mag 7 Earnings
Five of the Magnificent Seven stocks report this week, beginning with Alphabet, Meta, and Microsoft tonight. Alphabet has led the group lately, up roughly 40% since its last earnings release. All three companies should provide valuable updates on AI progress and investment plans — key themes driving tech momentum into year-end.
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The Setup — Nvidia
By the looks of things though, AI spending remains robust. We’ve heard countless partnerships and deals over the last few months and now, Nvidia shares are soaring to record highs. The stock jumped 5% yesterday and is up again in pre-market trading today as the company approaches a $5 trillion market cap.
Shares of Nvidia initially struggled with the $185 level, but found support in the $165 to $170 zone. The stock also found support from its 50-day moving average. As NVDA reaches new highs, bulls will want to see support continue to come into play as investors buy the dip.
Options
Investors who believe shares will move higher over time may consider participating with calls or call spreads. If speculating on a long-term rise, investors might consider using adequate time until expiration.
For investors who would rather speculate on the stock decline or wish to hedge a long position, they could use puts or put spreads.
To learn more about options, consider visiting the eToro Academy.
What Wall Street’s Watching
Shares of Visa are down slightly this morning after the firm reported its quarterly results. The company beat on earnings and revenue expectations, with the latter growing nearly 12%. Further, management raised the company’s dividend by 14%. Dig into the fundamentals for V.
Verizon stock is up about 4% in pre-market trading after the firm beat on earnings, with profits coming in at $1.21 a share vs. estimates of $1.19 a share. While revenue slightly missed analysts’ expectations, management reaffirmed its full-year outlook and raised the telecom giant’s dividend.
Boeing shares are slightly lower this morning after a complicated quarter. On an adjusted basis, the company reported a loss of $7.47 a share vs. expectations for a loss of $4.59 a share. However, revenue of $23.3 billion beat expectations for $22 billion, while the company is on pace for its highest airplane deliveries since 2018. Check out the charts for BA.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.