Good morning. The day belongs to Nvidia. Earnings drop after the close, and the options market is pricing an 8 to 10% move on the print. Street consensus sits at $1.78 EPS on $79.2 billion in revenue, with data center near $73 billion and Q2 guidance the real swing factor. Whisper numbers are at $90 billion for next quarter. Anything short of that and the AI-capex trade gets retested.
Underneath the Nvidia story, yields are doing the work. The 30-year crossed 5.19% yesterday, the highest since 2007, and the 10-year sits at 4.69%. That move alone explains why risk assets are not catching a bid even with the Iran de-escalation. Money is being repriced.
Europe opening softer on the back of it. DAX called -0.7%, FTSE -0.6%, CAC -0.5%. UK inflation data lands later this morning and could push gilt yields further.
Asia closed red. Nikkei -1.29%, Topix -1.45%, Hang Seng -0.55%, Kospi -0.69%. ASX 200 also down. Same yield story, different time zone.
US: yesterday S&P, Dow, and Nasdaq all closed lower. Today's futures are quiet ahead of the Nvidia print, but the tape leans defensive.
Oil still elevated despite Trump pulling the planned strike. WTI at $107.70, Brent at $110.30. Hormuz stays effectively closed. Crypto is wobbling at support. BTC $76,984, ETH around $2,117. Gold $4,475 and silver near $74, both pressured by the yield move.
Today's calendar: UK CPI, Nvidia earnings after the close, Fed speakers throughout the day. Mortgage applications and EIA crude inventories also on the tape.
The whole session is essentially a Nvidia waiting room with rising yields in the background. Both questions get answered after the bell.
We'll be watching.
MCO Morning Wrap: Nvidia Night, Yields Doing the Work
The day belongs to Nvidia, with earnings after the close and options pricing an 8-10% move. Underneath, the 30-year yield at 5.19% (highest since 2007) is doing the real work. BTC at 76.9K, oil still elevated, Europe and Asia softer.