U.S. GDP, NVIDIA, Alibaba results: 5 keys on Wall Street

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U.S. GDP, NVIDIA, Alibaba results: 5 keys on Wall Street

The United States releases revised fourth-quarter gross domestic product data, a day after Federal Reserve minutes indicated frustration as markets try to force it into an early pivot. Other central banks around the world carry out their own pivots, Korea has stopped raising rates and Turkey cuts them. Nvidia (NASDAQ:NVDA) encourages the chip manufacturing sector by anticipating the rise of artificial intelligence. Stocks bottom out after last week’s steady losses.

Alibaba (NYSE:DROOL) presents its results. And crude prices are rising despite another sharp rise in U.S. stockpiles.

Here are the five main issues to keep an eye on this Thursday, February 23, in the financial markets.

1. U.S. GDP and Jobless Claims

In the United States, updated figures from the Gross domestic product of the last quarter of last year. Although the figures are inevitably retrospective, the susceptibility of GDP data to large revisions appears to have increased since the pandemic, due to difficulties in capturing changes in work and consumption patterns.

The first reading indicates that the economy is growing at an annualized rate of 2.9%, with the price index rising. Personal consumption expenditure core (the Fed’s favorite measure of inflation) at 3.9%.

The focus will be on weekly data from Applications for unemployment benefit, which will also be released at 14:30 p.m. (CET), while the Kansas City Fed will release its monthly business survey at 16:00 p.m. (CET).

2. Nvidia predicts AI-driven boom

Nvidia has jumped on the AI bandwagon and forecasts a boom in demand for its chips from data centers that they believe will be busy using the new generation of AI tools like ChatGPT.

The company has also seen a rebound in demand from the gaming sector, following the slump that followed the end of the pandemic. This has a more immediate value for the company, given its dominant position in the sector.

The value soared more than 8% at the start of trading on Thursday as well as contractor Taiwan Semiconductor Manufacturing, and rivals BE Semiconductor Industries and Advanced Micro Devices (NASDAQ:AMD).

Nvidia’s report comes on the same day Intel (NASDAQ:INTC) cuts its dividend by two-thirds to fund a massive expansion of U.S. chip-making capacity.

3. The stock markets point to a slight rebound at the opening; Nvidia boosts chipmakers

U.S. stock markets are pointing to a slightly higher opening, following a one-month low on Wednesday. The Minutes of the Fed’s last meeting contained little that had not already been taken into account, and analysts point out that the series of stronger-than-expected economic data since the meeting had limited the relevance of the minutes.

At 12:48 (CET), the {{8873|futures of the Dow Jones}} are aiming for a rise of 72 points or 0.2%, while the S&P 500 futures rise by 0.4% and Nasdaq 100 futures advanced 0.8%, with chipmakers leading the way after Nvidia’s report.

Stocks likely to grab attention on Thursday include shale oil producer Pioneer (TYO:6773) Natural Resources, which published a report by results better than expected at the end of a day in which its shares hit five-month lows, and those of Lucid Group, whose forecast of doubling output this year dashed market hopes. Shares fall more than 10% before market opens.

Meanwhile, the National Transportation Safety Board will release its report on the derailment of a Norfolk Southern train carrying hazardous chemicals.

The Alibaba It’s the big results report of the day, with American Tower, Keurig Dr Pepper, Newmont Goldcorp and Cheniere Energy in the secondary cast.

4. Core inflation in the euro area remains stable in January; Korea suspends hikes and Turkey cuts interest rates

Eurostat has put an end to the great mystery of January 2023 inflation, stating that the prices fell by 0.2% in the month as a whole, so that the Annual fee It fell from 9.2% to 8.6%. The Underlying prices fell by 0.8%, but the Annual fee It rose from 5.2% to 5.3%.

Economists focused particularly on the latter data, considering it the main reason for the upward revision of the expectations of the ECB during the past week.

Catherine Mann, head of monetary policy at the Bank of England, echoed a concern that also appeared in the minutes of the Federal Reserve, namely that expectations of a “turnaround” by central banks had led to an easing of financial conditions. This made it more likely that inflation would remain high longer.

In Asia, the Bank of Korea It has decided to keep its key interest rates unchanged after 12 months of successive increases. However, the Turkish central bank cut its key interest rates by 50 basis points to 8.5%, its lowest level in the last two years.

5. Oil is unfazed by strong rise in U.S. stockpiles

Oilprices rise, undeterred by another massive increase in U.S. crude stockpiles. According to the U.S. Oil Industry, stockpiles rose by nearly 10 million barrels last week, well above estimates. The U.S. Government data they may or may not corroborate that at 17:00 (CET).

At 12:15 ET, the U.S. crude futures They rose 0.9% to $74.64 a barrel, while Brent crude A rise of 0.9% is pointed to 81.30 dollars per barrel.

Prices had been supported on Wednesday by a Reuters report suggesting Russia intends to cut exports from its western ports by as much as 25% over a month in an effort to squeeze more revenue out of shipments being restricted by Western sanctions.

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