Key Points
- Nvidia trades at $181.83, up 0.52%, holding near resistance at $183.91.
- Options traders price in a $260B market value swing on earnings, with focus on China business.
Asian equities drifted on Wednesday as traders awaited Nvidia’s results, a catalyst expected to set the tone for near-term risk appetite.
Data showed options markets pricing in a potential $260 billion swing in Nvidia’s market value on earnings, underlining just how pivotal the AI leader has become for global sentiment.
The earnings arrive against a fraught backdrop. Political drama in France has unsettled European traders after Prime Minister Francois Bayrou’s failed debt-reduction gamble backfired, while U.S. markets remain focused on the growing clash between President Donald Trump and the Federal Reserve.
Trump’s firing of Governor Lisa Cook, which is heading for a court battle, has stirred speculation that Chair Jerome Powell could also be targeted.
Yields have swung sharply, with the two-year note touching its lowest since May at 3.654% before edging higher.
Markets remain heavily tilted toward easing, with traders pricing an 84% chance of a September Fed cut and more than 100 bps of cumulative reductions by June 2026.
The dollar recovered slightly in Asia, while the euro softened to 1.1618 and the yen weakened to 147.87 per dollar.
For Nvidia, attention will fall on its China business amid tariff tensions and a profit-sharing deal with the Trump administration.
Any disappointment could ripple across global tech, given the sector’s role in propping up equity benchmarks this year.
Technical Analysis
Nvidia (NVDA) has staged a powerful recovery since its April low of 86.59, more than doubling in value to reach recent highs near 183.91.
The stock has been riding its 5- and 10-day moving averages consistently higher, reflecting strong buying momentum and confidence in the broader AI-driven growth story.
While NVDA is now trading just below its recent high at 181.83, the broader trend remains intact.
The MACD, however, has started to roll over, showing that bullish momentum is cooling and consolidation may be underway.
Key resistance remains at 183.91, and a breakout above could open the way toward 190–200. On the downside, support sits near 175, with a deeper floor at 160 aligned with the 30-day moving average.
Overall, Nvidia’s chart suggests strength in the longer-term uptrend, but traders should watch for short-term pullbacks as momentum softens.
Cautious Forecast
If Nvidia delivers earnings above expectations, shares could break through $185 and extend toward $190. A miss, particularly on China sales, risks a reversal back to $172–$175, dragging broader tech sentiment lower in the process.
