Alert: Trump Cancels Iran Attack Tomorrow...
In a Nutshell
Markets sold off on news of a potential Trump-led Iran strike but rallied after he paused the attack at the request of Gulf leaders. Attention now shifts to Nvidia’s earnings on May 20, with insider selling and high valuations raising concerns about further downside. Broader worries include elevated bond yields, rising inflation, and a weakening labor market.
These notes were generated by AI and may contain inaccuracies.
Markets reacted to news that Trump announced the planned Iran attack is on hold after Gulf leaders made a request. The US was supposedly set to attack, which would have ended the ceasefire and likely caused negative market reactions. This news emerged during a day with significant selling pressure, particularly affecting Nvidia and the broader NASDAQ market.
On the 4-hour timeframe, markets showed a slight pullback but remain in a bullish position overall. The market is in the early stages of a possible reversal, though full confirmation of an active sell-off has not yet been established. Caution is advised against becoming overly excited without proper confirmation.
Tomorrow, May 19th, Home Depot is scheduled to report earnings. On May 20th, Nvidia will report earnings with a market capitalization of $5.38 trillion. Markets are closely watching Nvidia's upcoming report.
Markets sold off from open to close, but rallied in the final moments after Trump announced the attack was on hold. This follows a pattern where markets celebrate 5% on ceasefire announcements and retrace 5% on potential attack news. Markets tend to be more willing to rally than to sell off.
The NASDAQ began to recover during the day but is showing slight selling pressure during overnight hours. It remains to be seen whether the sell-off will continue.
The primary focus this week centers on Nvidia's earnings report, scheduled after market close on Wednesday. Insider activity shows more selling than buying, with transactions in the tens of millions of dollars. This could indicate profit-taking given Nvidia's elevated valuation levels.
Bond yields remain at incredibly high levels, which is concerning. Inflation has reached nearly two to three-year highs. The labor market faces challenges with widespread layoffs, AI displacing jobs, and overall weakening conditions. A new Fed chair adds uncertainty regarding future monetary policy responses.
Mumu offers a sign-up bonus where new users can earn up to $1,000 in Nvidia stock plus up to 8.1% APY. The bonus amount depends on the initial deposit. Uninvested cash earns up to 8.1% APY for the first two to three months.
The positive news from Trump may represent market manipulation intended to provide false hope before another sell-off. The market's direction will depend on whether fear continues to drive selling or if certainty around Nvidia's performance provides support. Nvidia's earnings report on Wednesday will be the key event everyone is watching.
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