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Markets Steady Ahead of Nvidia Results as Fed and France Risks Linger

Anticipation for Nvidia’s after-hours report keeps risk appetite subdued following a jump in producer prices.

La salle de contrôle d'Euronext, société qui gère la Bourse de Paris
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Overview

  • U.S. and European equities traded with modest moves as investors waited for Nvidia’s quarterly update, seen as a key test for the AI trade given the company’s roughly 8% weight in the S&P 500.
  • Analysts polled by FactSet expect Nvidia to post revenue growth of more than 50% for the quarter, heightening focus on the market reaction after the U.S. close.
  • U.S. producer prices rose 0.9% in July, well above forecasts, curbing expectations for rapid Federal Reserve rate cuts and nudging Treasury yields higher ahead of GDP and PCE data later in the week.
  • President Donald Trump said he had dismissed Fed governor Lisa Cook, a move Cook rejected as unlawful as she vowed not to resign, with markets largely discounting an immediate change at the central bank.
  • French political uncertainty persisted after Prime Minister François Bayrou set a September 8 confidence vote, with the 10-year OAT yield near 3.50% and the spread over German Bunds widening to about 0.78 point.