OptionsDesk broker Simon Hanouka speaks to Thomas Warner from Proactive to round off another big week in the markets. The spotlight was on the remarkable performance of American multinational technology company NVIDIA Corporation (NASDAQ:NVDA), which Hanouka says "smashed its earnings" this week. He notes that NVIDIA surpassed forecasts with earnings of $13.5 billion compared to an expected $11.2 billion, sending shares up 7% to over $500 in after-hours trading, breaking their previous high. This achievement solidified NVIDIA's status among the few trillion-dollar valued companies globally. Hanouka highlighted NVIDIA's unique market niche, offering specialised software in addition to chips, setting them apart from competitors like AMD.
Hanouka also discussed options trading around NVIDIA's outcome, emphasising bullish short-term trades and protective put buying by investors seeking to secure profits while safeguarding against potential downturns.
Attention then turns to anticipation of the Jackson Hole meeting in the US and its historical market impact. Hanouka noted exceptions in 2019 and 2022 when comments on prolonged higher rates by Federal Reserve Chair Jerome Powell led to market shifts.
Addressing a pivotal development, Hanouka touched on the BRICS group's expansion, which could potentially challenge the US's economic dominance. Six new BRICS members might reshape global economics, compelling the Federal Reserve to react strategically to safeguard the US petrodollar.
