The anticipation of yesterday has become the talk of the town today, as NVIDIAs earnings announcement blew all expectations out of the water. As part of ‘The Magnificent Seven’, NVIDIA has seen shares rise by over 200% just this year. Bad news from the earnings could have sent market sentiment plummeting. But thankfully, huge demand for their AI processors has delivered strong results and sent stock markets in a positive direction. Tech, and other AI related spheres will also breathe a sigh of relief, as the buoyancy of the results suggests that the ongoing AI experiment is paying off.
Yesterday saw the release of the PPI data across the Eurozone, which is the purchasing manager’s index and which helps to ascertain how healthy business conditions are. The decline in the result was greater than anticipated, particularly in the powerhouse of the region: Germany. The pressures of inflation are clearly taking their toll on the region and are likely to point towards a further interest rate hike, which is rarely good news for the markets.
Harbour Energy, the largest listed independent oil and gas company in London, scaled back on its future production and issued profit warnings that were a distinct flop. The main culprit for the $8 million loss in the first six months of this year? Windfall taxes. As these taxes on North Sea oil producers are set to last until 2028, the company is seeking out new projects in Mexico and Indonesia to try and desperately keep the dividend strong and shareholders happy.
Sources: Reuters, AJ Bell, Bloomberg, Nasdaq, City AM