Unexpectedly, the past week concluded with a sense of unease pervading the markets, leaving traders surprised and apprehensive.
Several factors contributed to this unease:
The seemingly unstoppable surge in Nvidia (NVDA) shares hit a roadblock just as the possibility of reaching $1,000 per share emerged.
Major stock-market indices retreated for the second consecutive week, with the Dow Jones Industrial Average experiencing its third consecutive weekly decline.
Oil prices surged by nearly 4%, fueled by growing concerns over the intensity of conflicts in the Middle East and between Russia and Ukraine.
Interest rates began to climb, dashing hopes among homebuyers for a decrease in mortgage rates.
Additionally, inflation reports came in stronger than anticipated, partly due to the rise in oil prices. U.S. gasoline prices have increased by 11% since the beginning of the year, a trend typically observed in anticipation of the summer driving season.
The market pullback was surprising considering the significant rebound observed since the end of October. The S&P 500 surged by 26% to reach an all-time closing high of 5,175 on March 12, before retracing by 1.1%. Such fluctuations are common in markets.
Bitcoin served as a reminder to investors that sentiment can swiftly shift. After climbing by 7.2% from March 9 to reach $73,463 on March 13, the cryptocurrency experienced a 9% decline in less than three days, settling at $66,916. Nonetheless, it remains up by 57% for the year.
The duration of this investor unease may hinge on the market’s reaction to two pivotal events scheduled for the upcoming week:
1. Nvidia’s annual developer conference commences on Monday.
2. The Federal Reserve convenes for a significant meeting on interest rates spanning Tuesday and Wednesday.
The Nvidia GTC AI conference, which kicks off on Monday afternoon in San Jose, Calif., offers insights into various AI-related topics. CEO Jensen Huang is anticipated to deliver the keynote address, possibly unveiling the company’s latest products, including its next-generation B100 GPU tailored for AI and high-performance computing applications.
