As the morning dawns, pre-market futures are beginning to surge higher, building upon a strong performance from the tech-heavy Nasdaq index on Monday. While the Dow and S&P 500 remained flat, the blue-chip Dow is currently leading the charge with a +120 point gain, followed closely by the S&P at +13 points and the Nasdaq at +18 points. The small-cap Russell 2000 is also up +7 points.
NVIDIA’s CES Keynote Sets the Tone
The Consumer Electronics Show (CES) in Las Vegas on Monday evening was the perfect stage for NVIDIA CEO Jensen Huang to unveil some exciting new developments from his company. Huang, dressed in a sleek black Tom Ford lizard-skin motorcycle jacket, took center stage with announcements that are likely to send ripples through the tech industry.
Graphics Card and AI Chip Unveiled
Among the key areas highlighted by Huang was NVIDIA’s new graphics card for gaming – the GeForce RTX 5090 – designed specifically for desktop PCs. Additionally, he introduced a smaller AI chip called GB10, which is essentially a stripped-down version of its more powerful GB200 counterpart. According to Huang, this move is aimed at capitalizing on growing demand from major tech companies.
Cosmos Platform: Training Robots and Self-Driving Cars
The new Cosmos platform showcased by NVIDIA has significant implications for the future of robotics and autonomous vehicles. With this innovative technology, Huang envisions a world where robots can be trained more efficiently and self-driving cars can navigate complex environments with greater ease.
Will CES Keynote Be a Catalyst for NVDA Stock?
While it’s still early days to gauge the full impact of NVIDIA’s announcements on its stock price, history suggests that such events often lead to significant gains. A year ago, NVDA shares surged by +90% over the 10 weeks following the 2024 CES. Currently, Huang’s company is trading up +2% ahead of today’s opening bell and has regained its position as the world’s largest company in terms of market capitalization – surpassing Apple (AAPL).
U.S. Trade Deficit: A Mixed Bag
The November trade deficit figures released this morning present a mixed picture, with the -$78.2 billion deficit slightly less severe than expected at -$78.4 billion. This marks the deepest deficit since September of last year but remains below the all-time low of -$101.9 billion recorded in March 2022.
Economic Metrics to Watch: ISM Services and JOLTS
Later today, after the opening bell, investors will receive two crucial economic metrics that could shape market sentiment:
- ISM Services for December: The expected growth rate is +53.4% from +52.1% reported in November. This represents a solid expansion within the services sector, which has been driving the U.S. economy’s strong performance.
- JOLTS data for November: The predicted number of job openings remains steady at 7.7 million, maintaining the recent range observed over several months. This metric may not have a significant impact on the Fed’s decision to adjust interest rates by the end of January.
Jobs Week: A Busy Schedule Ahead
The forthcoming "Jobs Week" will be dominated by critical labor market data releases, including the ISM Services index and JOLTS job openings. While these reports are unlikely to trigger a drastic change in direction for monetary policy, they will provide valuable insights into the U.S. economy’s momentum.
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Investor Insights: A Year in Review
As we reflect on the past year’s market performance, it’s essential to understand how key economic indicators and company announcements can impact stock prices. Stay informed about industry trends and regulatory changes with expert analysis from Zacks Investment Research.
