By Ricky S 
On Thursday morning, the way stocks are going to move is not entirely clear. Inconfuses sentiments somewhat to see Nvidia outperform, however, other tech stocks may suffer because of President Donald Trump’s controversial trade noises. The S&P 500 and Nasdaq 100 futures climbed marginally, whereas Dow Jones Industrial Average futures fell firm the gains even turned them into losses. The thing to be derived from this is the market of complex investment that brings all investors together to watch if the companies play their role since the economies are moving ahead and behind.
Nvidia, which is positioned as a semiconductor company with a focus on artificial intelligence, revealed better-than-expected final sales and earnings in the fourth quarter. The corporation added 78% to its revenue year-on-year and this was primarily due to the large demand for the AI hardware solutions that are the company’s flagship. Despite the perfect report, Nvidia’s stock price fluctuated significantly in the after-hours session, that shows how the stock was already very much overvalued. The semiconductors business performance is the sector that is most observed in this area being a marker of the entire technology sector and its role in boosting the economy.
While Nvidia was the highlight of the top-report winner, Salesforce reported weak results, and hence, there was more than a 5% decrease in the stocks. The fact that the two most majorly discussed tech companies showed the extreme contrasting performance exactly proves that the market is becoming more and more selective. The difference in the fortune of these computer companies shows how hard of a job the companies have to do to survive in a world in which the economy and customer demand are not ignored as the latter develops and flourishes.
The current broader market narrative is still focused on the truce of commercial relations. It is significant to note the recent comments of President Trump over the issue of possible import tariffs to be imposed on the European Union. The new U.S. President’s very explicit commitment to charge a 25% tax on European automobiles and the planned punitive tariffs on Mexico and Canada have simply reinstated the long-forgotten fears of a global trade war. The rapid recent developments have brought about a present-day level of uncertainty for the markets, as the reaction of the corporate profits and the economic growth outlook is still unclear for investors.
In addition to the aforementioned, economic numbers will play a critical role in determining the market mood. Investors are at the edge of their seats with inflation, consumer confidence, and employment data being consistently under their radar, they are using these figures in the economy to get insights into the overall health of the economy. Few recent releases are serving the purpose of a consistent picture, with some sectors successfully resisting the tough times while the rest are still experiencing strain. The current economic scenario of mixed development is an obstacle for investors to make a clear decision on the market’s direction.
The Federal Reserve’s policy on the US dollar remains the chief driver of market dynamics. In the US, where inflation rate you may see the central bank causing worries among the investors, and in the next week, the bank is expected to raise the interest rates. Investors are closely watching the signals from the central bank to get an idea of the monetary policy they might implement. The bank’s decisions in the following months can hugely determine equity prices, bond yields, and currency markets. Thus, a proper message from Fed officers is under close observation for the possibility of a policy change.