This report is from today’s TNC’s Daily Open, our international markets update. TNC Daily Open keeps investors informed on everything they need to know, no matter where they are.
Nvidia’s 2024 revenue more than doubled compared to the previous year, exceeding analysts’ projections.
The company also anticipates that sales in the current quarter will continue to grow faster than Wall Street’s estimates, largely due to Nvidia’s new Blackwell artificial intelligence chip, into which Big Tech companies are investing billions.
The chipmaker also downplayed concerns about DeepSeek, stating that more efficient AI models still require much processing power in the long run. Meanwhile, consumer surveys conducted by the Consumer Board and the University of Michigan highlight growing concerns about inflation and the economy.
This resulted in an “inverted yield curve,” a well-recognized and generally accurate indicator of an upcoming recession within 18 months, with the 10-year Treasury yield falling below that of the 3-month note.
Despite Nvidia’s impressive sales and Big Tech’s capital expenditures, there appears to be a modest waning of confidence in the U.S. economy. Whether technology can stabilize is still up in the air.
What To Note Today
Nvidia Delivers Positive Guidance And Surpasses Expectations
Following the bell on Wednesday, Nvidia released fourth-quarter profits that were above Wall Street forecasts. While quarterly revenue increased 78%, net income increased 80% to $22.09 billion from $12.29 billion during the same period last year. Additionally, Nvidia provided a forecast for the current quarter that exceeded LSEG projections. However, its growth pace is decreasing; shares dropped 1.5% during extended trading. Nevertheless, CEO Jensen Huang is certain that next-generation AI will require 100 times as much processing power as previous models.
Nasdaq And S&P End Their Losing Streaks
The Nasdaq Composite and the S&P 500 ended their four-day losing streaks on Wednesday. The Nasdaq gained 0.26%, while the broad-based index increased by 0.01%. On the other hand, the Dow Jones Industrial Average dropped 0.43%. Thursday’s Asia-Pacific markets were erratic. Even when Seven & I shares fell as much as 12% after the company revealed that the founding family could not obtain the necessary funding to acquire the convenience store operator, Japan’s Nikkei 225 increased by about 0.3%.
Economic Statements During The Conference In China
Beginning Tuesday, China will convene its yearly parliamentary assembly, “Two Sessions.” The Asia Society Policy Institute predicts Beijing will reduce its annual consumer price inflation target at the opening meeting from 3% or higher in previous years to about 2%. Additionally, analysts predict China’s budget deficit would rise, enabling more significant stimulus programs.
Inverted U.S. Yield Curve
In Wednesday’s trade, the yield on the 10-year Treasury note dropped below that of the 3-month note, creating an “inverted yield curve.” It is thought to be a recession prediction. The New York Fed even provides monthly updates on the relationship and percentage probabilities of a recession over the next 12 months since it views it as a dependable indicator.
Nvidia’s Shares To Shake Markets
Goldman Sachs analysis indicates that the stock market will be more affected than typical over the next two days by Nvidia’s earnings, which were announced after the bell. This time, Nvidia has a disproportionate impact for two reasons.
Bottom Line
India has been hopeful that Tesla will establish a production facility there. And just as the Indian government is trying to embrace the market by enacting a new electric vehicle tax policy, the automaker that has long seemed hesitant is now expressing interest in it.
According to the domestic news agency IANS, India announced an EV policy last year that would reduce import taxes on EVs from roughly 70% to 15%. The government is expected to begin accepting applications under the program by the end of March.
Ammar Master, a South Asia director of automotive at GlobalData, told reporters that the EV legislation is a deliberate attempt to cater to Tesla’s commercial interests and indicates India’s willingness to assist EV manufacture.
