Photo by BoliviaInteligente on Unsplash
 

Because Nvidia (NVDA) shares account for about 5.3% of the S&P 500 and around 8.5% of the Nasdaq Composite, its beat and raise quarter is lifting equity futures this morning. Nvidia also declared a 10-to-1 stock split effective June 7. For the current quarter, Nvidia sees its top line rising to $28 billion plus or minus 2%, well ahead of the $26.8 billion market forecast and the $13.5 billion posted in the July 2023 quarter. 

Yesterday’s publication of the Fed’s May FOMC meeting minutes didn’t have anything new, but they did reinforce the Fed's "high-for-longer" stance. To us, the more important Fed comments post-April CPI report were made on Tuesday by Fed Governor Chris Waller, who said more evidence of slowing price growth over the next three to five months would allow for the lowering rates by the end of the year. 

The Fed meeting minutes did remind the market that the central bank remains data dependent, and that should put today’s Flash May PMI report out at 9:45 AM ET in focus. We’ll be reviewing the data for what it says about input and output cost inflation, looking to see if it suggests we could see another leg down in core CPI data with the May report. If it does, it would likely help the market rebound from yesterday’s post-Fed meeting minutes sell-off.  We’ll want to see if this morning’s report softens rate cut timing comments from Atlanta Fed President Raphael Bostic when he speaks at 3 PM ET. Given his comment that we shared above, the same goes for Fed Governor Waller when he speaks tomorrow morning. 

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