Morning Dose: NVIDIA Sparks Tech Surge, Fed FOMC Power Play
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Welcome to The Morning Dose – Everything You Need to Know Before the Market Opens. It is Wednesday, October 29th, and futures are pointing to a higher open this morning, continuing the momentum from yesterday’s record-setting rally. NVIDIA ( NVDA ) led the charge yesterday, up nearly five percent and already showing a four percent gain in pre-market trading, fueled by positive news from their GPU Technology Conference.
Overnight Headlines
The tech sector, buoyed by NVIDIA’s surge, is likely to set the tone today, with Microsoft ( MSFT ) also in focus ahead of their earnings release. However, all eyes are on the Federal Reserve’s FOMC decision at 2 P.M. Eastern time, with a twenty-five basis point rate cut widely anticipated. Traders will closely analyze the Fed’s language for hints on future monetary policy.
Economic Announcements
Global markets saw a positive overnight session, with Japan’s Nikkei up over two percent and Europe trading mostly higher, supported by strong bank earnings. Australia’s hotter-than-expected inflation numbers surprised the markets, potentially impacting central bank decisions.
Earnings Highlights
- Winners: Caterpillar ( CAT ) beat on both earnings and revenue, Verizon posted strong results, and Teradyne ( TER ) surged nearly twenty percent on an exceptional report.
- Losers: Stride ( LRN ) and Varonis Systems ( VRNS ) plummeted due to disappointing guidance, while Boeing faced selling pressure following mixed earnings and jet delays.
- M&A News: CSG Systems gained over fourteen percent on news of its acquisition by NEC, and Olympic Steel ( ZEUS ) surged on a merger announcement with Ryerson.
Top Movers
Tech stocks are leading the charge, emphasizing caution ahead of the Fed’s decision, while earnings announcements driving significant price swings, both positive and negative, can’t be ignored.
Quick Trade Ideas
Watch for SPY (S&P 500 ETF) key levels at 288 for support and 289 for resistance, with QQQ (Nasdaq ETF) pivotal levels at 635 and 636.35. Patience is advised until after the Fed decision for clearer market direction.
Key Takeaway
Tech strength is evident, but market sentiment hinges on the Fed’s decision. Trade cautiously, manage risk, and stay alert for post-decision market volatility.