Strong beginning to ‘Nvidia week’

Global markets are buzzing with excitement as the week kicks off with a focus on the artificial intelligence (AI) sector. Investors are eagerly awaiting Nvidia’s quarterly earnings report on Wednesday, with the chipmaking giant expected to showcase impressive revenue growth and earnings per share.

The AI industry is heating up, with Advanced Micro Devices gaining ground after announcing plans to offer cloud computing customers a platform of AMD AI chips to compete with Nvidia. Reddit also saw a 10% rise following a partnership with OpenAI to bring its content to ChatGPT.

Despite the AI frenzy, U.S. markets are still riding high on strong economic growth and expectations of lower interest rates later in the year. Treasury yields saw a slight uptick on Friday, but the overall sentiment remains optimistic.

In China, markets reacted tepidly to government measures aimed at supporting the struggling property sector. Shares of Chinese developers wobbled as investors expressed concerns that the measures may not be sufficient to stabilize the housing market.

Meanwhile, in Japan, benchmark government bond yields reached their highest level in over a decade, driven by expectations of tighter monetary policy. The yen remained steady against the dollar, while gold prices surged to new records amid political uncertainty in Iran.

As the week unfolds, key events to watch include U.S. corporate earnings reports from companies like Palo Alto Networks and Nordson, as well as speeches from Federal Reserve officials. The market will also keep a close eye on U.S. Treasury auctions and any developments in the global business surveys.

Overall, the week ahead promises to be eventful, with a mix of economic data and corporate news shaping the direction of U.S. and global markets. Investors will be closely monitoring developments in the AI sector and keeping a watchful eye on geopolitical events that could impact market sentiment.