ETFs
Expanding AI, Nvidia Profits, Ether ETF: Trading Takeaways
The S&P 500 (^GSPC) and the Nasdaq (^IXIC) closed at record levels ahead of Nvidia (NVDA) first quarter results. Yahoo Finance Josh Schaefer joins Asking for a Trend to discuss some of the key takeaways from the trading day.
AI is dominating the market and the utility sector is booming as demand for new data centers increases. Utilities and energy are outperforming the S&P 500, and AI has become a major earnings topic across all sectors.
All eyes are on Nvidia, which is expected to report results after the bell on Wednesday. The microchip company faces sky-high profit expectations as the race for AI heats up, closing at a record high on Tuesday.
Finally, Schafer highlights optimism about the SEC’s potential approval of ether ETFs as a major takeaway from the trading day. Bitcoin ETFs were approved earlier this year and renewed enthusiasm for Ethereum sparked a significant rally.
For more expert insights and the latest market action, click here to watch this full episode of Asking for a Trend.
This article was written by Mélanie Riehl
Video transcription
Let’s move on to a record day for the S&P 500, the NASDAQ and a video just before earnings.
Josh Schafer is here with the takeaways on trading.
Joshua Josh This week it’s all about me.
We can’t talk about anything without talking about an I and especially today, looking at some of the market players with utility weeding, we’ve talked a lot about how an I and services public have been linked recently.
Also an I and an energy.
So when you look at the best performing sectors in the S&P 500 this year, two of them are utilities and energy.
They outperformed the S and P 500.
And one thing that’s been interesting to look at when you look at this, Josh, is sort of how companies are starting to talk more about AI, when you look at the earnings calls here.
This was interesting, highlighted by Goldman Sachs energy companies mentioning an I.
It’s a bit of an I over everything.
It’s the fourth trimester.
Less than 20% of companies are talking about an I. Fast forward to the first quarter of results, which is the quarter. We just saw over two-thirds of companies talk about an I. So people talked about an I like an energy business. , RIGHT?
How are you going to fuel these US GPs?
They take a lot of power.
Well, companies are saying yes, this is going to benefit us.
Also, people believe that it will benefit companies in the utility sector.
So that’s something I’m watching in tomorrow’s NVIDIA Irvings report.
When you think about OK, NVIDIA, that’s going to talk a lot about the demand that I’m demanding for their AI chips.
The story continues
But when they talk about this demand, what does that mean for the broader rally we’ve seen in other sectors?
And I guess in a way other sectors will also evolve in the same way that chips usually evolve with NVIDIA and technology evolves with NVIDIA after these earnings, will we start to see other pockets on the market which have been a hot A. also kind of compromise on this trend a bit after your point.
Josh is, let’s say in the video reports from tomorrow’s conference call.
CO Jensen Wong seems very optimistic about the quarterback lead.
Does this have some sort of positive ripple effect for certain energetic names?
Utilities, right?
Yeah.
At some point, if they want to sell, if they think they’re going to continue to sell more and more US GPs.
Yes, well that means more and more power.
I mean, I don’t know what specific companies that we might have strategies on can discuss that with us.
RIGHT?
Which companies will fuel this?
But at some point, power has to come from somewhere.
Morgan Stanley said these US GPs consumed 50 times more energy than other US GPs.
So a massive amount of power absorbed for these new US GPs.
Let’s move on to the next Schafer takeaway.
Our other takeaway is simply NVIDIA’s watershed moment.
And I think when we look at the markets today, we kind of wonder where the catalyst was for the markets.
There was just a little sort of drift to find, to try to find direction.
Looks like it’s AC PI week, right?
Like we’re going to have an inflation number tomorrow or an employment report on Friday, a labor report on Friday.
But it’s NVIDIA’s earnings that are where this week you look at options volatility and what’s priced into them.
This is an 8% change for NVIDIA after profits.
Most interesting to me is how inaccurate this has been over the last couple of quarters, resulting in quite a large movement, we haven’t always seen that with video.
You’re not a great predictor.
It’s not a good predictor.
And I think it comes down to that A. I trade from.
It’s hard to understand where it’s going to go next, and also when investors have had enough and the video closes at a record high, it wouldn’t be abnormal for a stock to close at a record high, have very strong earnings. , maybe even increase the tips.
But still, the stock is not going up because once again, it is already at its all-time high, 90% already this year, it does not go up automatically, right?
And then we take a look at our third takeaway.
Something a little different.
Ethereum, Ethereum ETF optimism.
Josh.
So that’s optimism about the potential SEC approval.
And I found this painting interesting.
So Bitcoin, obviously, S ETFs were approved earlier this year.
When you take a look at the month of January, Bitcoin actually fell a little bit at first because of this news, but it has had a very solid Bitcoins in Purple rally here since then. And you’ve heard a lot of positives about the inflows that these S ETFs have seen. .
And I think it was interesting for me to get into crypto and basically move into the real news today.
So when you look at the light blue line, it’s right next to me. Here, look at this massive jump.
Ethereum was trailing Bitcoin by 20% for the year to date, and it just rebounded by 20% today.
So a massive move for Ethereum.
And if you’re wondering what it’s worth, basically, what is ETF S approval worth?
Yeah, the market says it’s worth that much.
It’s not a bad thing, you know.
SEC Gary vs. He didn’t want this place.
Bitcoin ETF It took a trial now.
So will it take a trial to get your place?
A theory in ETF.
And if it did, it would take a long time.
RIGHT.
So the market aggressively prices something in a day and a bit of rs.
Joshua.
THANKS.