NVDA - Growth Fears Seeping Into The Stock Market – Nvidia's Rubin And Rate Cut Hope Help The Stock Market | Benzinga
To gain an edge, this is what you need to know today.
Growth Fears
Please click here for an enlarged chart chart of SPDR S&P 500 ETF Trust (ARCA:SPY) which represents the benchmark stock market index S&P 500 (SPX).
Note the following:
- The chart shows over 1% rally on Friday afternoon on rebalancing.
- We wrote in yesterday’s Morning Capsule:
In The Arora Report analysis, the last hour rally was due to month end rebalancing. Often, the rally on rebalancing reverses.
- The chart shows the giveback of the rebalancing rally’s gains, which is inline with historical patterns.
- The chart shows Wall Street front running blind money.
- The chart shows a rally in the afternoon on blind money buying. Blind money is invested in the afternoon.
- The chart shows the selloff in the early trade today on growth fears rising out of yesterday’s ISM data.
- ISM Manufacturing Index came at 48.7 vs. 49.6 consensus. A number less than 50 reflects economic contraction.
- In The Arora Report analysis, ISM data is going against momo gurus hopes of no landing.
- In The Arora Report analysis, after the weak ISM data the probability of a rate cut in September has increased to more than 50%. A higher probability of interest rate cuts helps the stock market go higher as long as the economy is not substantially weakening. In The Arora Report analysis, the issue here is that ISM data indicates a weakening economy. A weaker economy hits earnings.
- The stock market is waiting for factory orders and the JOLTS-job openings report. Both will be released today at 10am ET. In view of the growth fears, this data is taking on more importance than normal.
- Rubin from NVIDIA Corp (NASDAQ: NVDA) is helping the stock market stay up. From yesterday’s Morning Capsule:
We previously shared with you about Blackwell, the next generation chip platform for AI from Nvidia (NVDA). Now, NVDA is announcing the generation after Blackwell. It will be called Rubin.
- Actual election results in India are not inline with exit polls. Modi ...