Why the S&P 500 E‑Mini Took a Little Dip
The futures for the S&P 500 E‑Mini wound down by 0.16% on Thursday, after a one‑day wobble on Wednesday that pulled the index down 0.6%. Investors are still feeling the after‑shock of Nvidia’s surprising earnings.
Nvidia’s Earnings — A Mixed Bag
For those who love a good plot twist, Nvidia released quarterly results that were better than expected in revenue, net income, and next‑quarter forecasts, per Wall Street Journal. Unfortunately, the gross profit margin slid compared to the last quarter, a blow that stems from hiccups at Blackwell’s new manufacturing plant.
CEO Jensen Huang turned up the optimism on his earnings call, promising that the company is a game‑changer for data centers and AI. Yet the stock still tracked a 5% dip in Germany’s Gettex and nearly 3% in Milan, proving that markets are still a little wary.
Market Mood: Still Down, But With a Hint of Hope
Even with the positives, the market is stuck in a downward spiral. The key question is whether the interest‑rate cut that might arrive in September will pop the bubble. Many investors are nodding in anticipation of a jump of 1% by year‑end. But it could be a 0.25% cut instead, depending on the Fed’s moves.
Economic Numbers that Matter
- Weekly Initial Jobless Claims: Expected to mirroring last week’s 232,000.
- Core PCE (Inflation Indicator): Anticipated to rise to 2.7% in July YoY.
Even if the numbers turn out starker than forecast, they’re unlikely to dim the optimism that rates will fall. However, they could reduce the shot at a bold 50‑point cut in September (currently 35% probability vs. a 65% chance of a smaller cut). The market’s heartbeat shows that a gradual rhythm is more likely.
Bottom Line
The S&P 500 E‑Mini futures continue to wobble, but a hopeful narrative is brewing around interest rates and economic data. Keep an eye on the June job figures and the next core PCE release—those will shape the market’s next move.
