Wall Street is witnessing a positive market development at the start of the trading week, highlighted by a decrease in the yields of 10-year US Treasury bonds and a slight drop in oil prices. The yield on the 10-year US Treasury bonds is noted at 4.198%, while the price of WTI crude oil has fallen below $100, recently observed around $79-78. The VIX, a volatility index, has declined to 24. Market movements are largely influenced by reduced negative news and pressure on Donald Trump to find solutions regarding energy prices.
In the spotlight is Nvidia, particularly following Jensen Wang’s keynote address at the GTC conference. The company is projected to have an impressive revenue opportunity of up to $1 trillion by 2027 for its Blackwell and Vera Rubin platforms, an increase from an earlier revenue forecast of $500 billion. Wang emphasized the continuing demand for AI, which strengthens the narrative and future outlook for Nvidia.
However, uncertainties linger regarding the sustainability of Nvidia’s growth and its competitive landscape. Rivals such as AMD, Broadcom, and Marvel present ongoing challenges. UBS estimates the market size for inference in this sector to be between $3 trillion to $4 trillion by 2025, raising questions about whether the demand for Nvidia’s products will remain strong and how effectively it can compete.
Additionally, broader risks and perspectives across the markets are emerging, particularly in commodities like oil, gold, and Bitcoin. The gold price temporarily dipped below $1,000, while Bitcoin reached a high of $76,500 amid hopes for a sustainable recovery. These energy prices are impacting markets and creating uncertainties about inflation levels. The Federal Reserve is being closely monitored, especially since 67% of market participants do not expect an interest rate cut in the first half of the year.
