Looking good – Nvidia’s earnings easily beat expectations for the fourth quarter of fiscal year 2026 (the three months ending January 25, 2026), reporting $68.13 billion in revenue on Wednesday versus the estimate of $65.91 billion. The company also provided strong guidance for Q1 2026, with a revenue forecast of $76.44 billion to $79.56 billion. The Nasdaq and S&P 500 indexes rallied in anticipation of Nvidia’s earnings report. After the upbeat figures, the firm’s shares jumped about 3% to gave up these gains later on. Asian stocks have reacted positively and opened higher today, with Japanese shares hitting record highs.
Where’s the party? – Nvidia's report was great, but expectations were already extremely high ahead of time – it’s hard to excite markets with such a high bar. Investors are anxious that the AI bubble could burst and good numbers haven’t removed that concern. Can AI infrastructure spending remain at such high levels? Will AI capex keep accelerating? These are the nagging questions on investors’ minds, who are positive but subdued as they digest what happened yesterday. If market sentiment improves, we could see US stocks fly higher and the US Dollar lose ground. If the market mood sours, the US Dollar could go up at the expense of stocks.
Waiting for Wall Street – If the US follows what we saw in Asia this morning, it could be a good day for equities, particularly for the tech-heavy Nasdaq composite. However, if investors focus on their AI fears rather than Nvidia’s earnings, that could mean limited gains on Wall Street today. Meanwhile, the latest round of talks between the US and Iran will be held this Thursday in Geneva and are seen as a last-ditch effort to reach a nuclear deal and avoid a full-blown military confrontation. A breakthrough in the negotiations would be bullish for stocks and weigh on commodities, but a failure would sink risk appetite, likely pushing the first ones higher and sending safe-havens such as Gold and Silver lower.
