Hala,
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amana’s take
- Gold price rebounded to $2,518 amid risk aversion and falling Treasury yields, driven by disappointing Nvidia guidance and hawkish Federal Reserve comments. Traders await US Q2 GDP and Pending Home Sales data for further market influence.
- WTI crude oil fell to $74.80 due to concerns over China’s slowing demand and weaker-than-expected US crude inventory decline. Potential supply disruptions in Libya and Middle East geopolitical risks may limit losses.
- Asian shares drop as focus shifts from Nvidia’s earnings to US economic data. Investors await the PCE inflation report, while major Asian indices, including Nikkei 225 and Hang Seng, post losses amid market caution.
Stock Market Update
📉↘️ US stocks took a breather on Wednesday, with Nvidia’s stumble casting a shadow ahead of its much-anticipated earnings report. The Nasdaq 100 fell 1.18% to 19,350.78, the S&P 500 shed 0.6% to 5,592.18, while the Dow slid 0.39%, to 41,091.42.(1) We’ll tell you more about it below! 💃📝
📊🔽 Similarly, UAE markets were in deep red as Dubai dropped 0.43% to 4,324.20, led by NIH’s 9.58% plunge, and Abu Dhabi eased 0.483% to 9,288.93, thanks to RAPCO Investment’s 3.82% slip.(2) ⬇️⏬
🚀 Nvidia’s Rocket Ride Faces Turbulence as AI Boom Continues
Nvidia’s rocket-fueled journey through the AI boom hit some turbulence this quarter, with the company reporting soaring sales and earnings that more than doubled year-on-year. Despite the stellar performance, Nvidia’s stock slipped over 6% in after-hours trading as investors grew jittery over complications with the company’s next-gen Blackwell chips and concerns about the AI boom’s staying power.(3)Nvidia’s Chief Financial Officer Colette Kress attributed the narrowing profit margins to production hiccups. Just a few bumps in the cosmos — nothing that a little rocket fuel can’t fix! 🚀✨
📊 Key Figures from the Quarter:
- Revenue: $30 billion, projected to rise to $32.5 billion next quarter. 💵
- Profit: More than doubled to $16.6 billion. 📈
- Stock Performance: Despite a 150% rise this year, shares dipped 6% post-earnings. 📉
- Challenges: Production issues with Blackwell chips led to a $908 million provision. ⚙️
💼 Maintaining Course Amidst the Storm
CEO Jensen Huang remains optimistic, highlighting new opportunities in generative AI, despite investor concerns. Nvidia, the AI chip market leader, continues to face fierce competition and regulatory scrutiny, but it’s still navigating the industry’s complexities with confidence. As the rocket ride through the AI boom continues, all eyes are on whether Nvidia can maintain its altitude amidst the market’s ever-changing dynamics — or if they’ll need to hit the turbo boosters. 🚀😎
Closer to Home
- 🆙 Salik just upgraded its 2024 revenue outlook to 7–8% from the previous 4–6%, thanks to the launch of its two shiny new toll gates worth AED 2.734 billion ($646 million).(4) Talk about a toll road to success! ⚡
- 💰 UAE-based NMDC Group, backed by IHC’sAlpha Dhabi, just got the go-ahead for its subsidiary NMDC Energy’s $877 million IPO. A whopping 1.150 billion shares will be up for grabs at AED 2.8 per share.(5) #IPOAlert 🤑
- 🏆 Dubai and Abu Dhabi reign supreme on Savills’ Executive Nomad Index — Dubai holds its crown at #1, while Abu Dhabi leaps to #2. The UAE’s mix of modern living and top-tier infrastructure has nomads hooked!(6) 🤩
What Else Is Trending
- 🧑💻 Super Micro Computer’s stock tumbled 19% on Wednesday after delaying its annual report, spooking investors already on edge from Hindenburg’s accounting allegations.(7) Talk about a rough day at the office! 📉
- 🛢️ Meanwhile, oil prices lost steam as the market erased earlier gains tied to Libya’s supply disruption fears. Brent dropped 1.13% to $78.65, and WTI fell 1.34% to $74.52. (8) ⛽
💬Quote of the Day
“There’s just so many different directions that generative AI is going, and so we’re actually seeing the momentum of generative AI accelerating.” — Jensen Huang, CEO of Nvidia
Learn more: https://amana.app/interest
Sources:(1) (7) (8) CNBC, (2) (4) (5) (6) Zawya, (3) The Wall Street Journal
