📊 Market Update

Market Event Recap:

• 🏛️ Fed minutes. The FOMC publishes the account of its last meeting on Wednesday. Several Fed officials are also due to speak during the week.

• 🤖 Nvidia earnings. The semiconductor company is expected to report a massive jump in revenue and profit on Wednesday. Shares are already up more than 90% this year after tripling in 2023.

• 🔧 PMI data. The US, China, euro zone, and UK are all to release May readings that should reinforce a brighter global economic outlook.

Market Event Update:

🏛️ Fed minutes. 

• Federal Reserve officials are concerned about inflation and are hesitant to lower interest rates.

• Minutes from their recent meeting show worries about timing amid inflation persisting above the 2% target. While some discussed tightening policy further, Chair Jerome Powell and others suggest a rate hike is unlikely soon.

• The Fed decided to maintain its benchmark rate. Economists anticipate a delay in rate cuts until September, with a second cut in December and further easing in 2025.

  

  Credit: Forex Basket

🤖Nvidia earnings. 

• Nvidia's stock surged 9% to over $1,000, with a market cap surpassing $2.5 trillion, following its first-quarter earnings beating forecasts.

• The company reported adjusted EPS of $6.12 on revenue of $26 billion, announced a 10-for-1 stock split, and raised its dividend.

• "Beyond cloud service providers, generative AI has expanded to consumer internet companies, and enterprise, sovereign AI, automotive and healthcare customers, creating multiple multibillion-dollar vertical markets."- Nvidia CEO Jensen Huang

  

  Credit: Yahoo Finance

🔧 PMI data. 

• Euro zone business activity surged to its highest level in a year, driven by robust demand for services and signs of manufacturing recovery, as indicated by HCOB's preliminary composite Purchasing Managers' Index climbing to 52.3, marking the third consecutive month of growth above the 50 level.

• The United Kingdom's Composite PMI declined to 52.80 points in May from April's 54.10, while Services PMI dropped to 52.90 from 55 points; conversely, Manufacturing PMI increased to 51.30 from 49.10 in April.

• US business activity surged in early May to its fastest pace in two years, driven by robust growth at service providers, as indicated by the S&P Global flash composite purchasing managers index rising to 54.4, its highest level since April 2022, while manufacturing output also expanded at an accelerated pace, contributing to inflationary pressures and challenging the Federal Reserve's efforts to keep interest rates higher for longer.