Nvidia price hits a record high as Microsoft nears a ten-month peak

 

This week

This week, investors will focus on Wednesday’s release of minutes from the Fed’s September meeting. Investors will also watch Tesla for further details on its new Roadster unveiling on October 10. Traders will also watch for statements from President Trump, particularly in relation to the Middle East.

 

Stocks

NVIDIA

Nvidia price gained 3.9% last week and surged to a record high, remaining the world’s most valuable company. The shares got another boost after Morgan Stanley restored Nvidia as its top semiconductor pick and set a $300 price target. Morgan Stanley said it sees more demand for Nvidia’s chips from government projects, smaller AI cloud companies, alongside the biggest tech firms. Nvidia also announced its biggest-ever share buyback on September 28. Nvidia’s GTC conference in Berlin, where CEO Jensen Huang will give a keynote, is on October 21. In November, the company will post earnings results, and investors will assess whether demand for its AI chips continues to grow.

Microsoft

Microsoft's price gained 0.3% last week and hit a ten-month high as Nvidia’s strong performance helped ease some concerns about demand for AI chips. That is important for Microsoft as it continues to spend heavily on AI and expand its Azure cloud business. Investors will focus on Microsoft’s Windows and Surface event on October 7, where Satya Nadella and Jensen Huang are expected to discuss bringing local AI to Windows PCs, including Nvidia’s RTX technology. Microsoft will report earnings in late October.

 

Commodities

Crude Oil

Crude oil price fell 0.9% last week and touched a one-month low as the G7 agreed to release 100 million barrels of crude and diesel stocks over four months to help ease pressure on fuel markets. The move came after the US pushed European governments to act as diesel prices rose sharply. Oil prices also moved lower early on Friday after mixed reports of progress around US-Iran talks, although uncertainty remained as reports emerged that the US was sending another aircraft carrier to the Middle East.

Gold

Gold price fell 3.4% last week and recorded a five-day low on Friday as rising US bond yields and a stronger dollar weighed on demand for the metal. Gold was also hit by the G7 fuel-stock release and reports of possible progress towards an agreement over shipping through the Strait of Hormuz, which eased some concerns over supply in the Middle East. Gold price recovered slightly after Friday’s weak US jobs report, but ended the week lower as investors weighed lower probability of a Fed rate hike against persistent inflation concerns.

Sugar

Sugar price jumped 7.5% last week and hit a multi-month high as concerns about supplies returned. Drier weather in key parts of India raised fears that the next crop could be smaller than previously expected, while rain in Brazil slowed harvesting. Traders were also looking at lower production forecasts for Thailand after dry weather damaged crops. Higher ethanol prices added to the pressure, giving Brazilian mills more reason to use cane for fuel instead of sugar and potentially leaving less sugar for export.

 

EUR/USD

EUR/USD price fell 1.2% last week and dropped to a sixteen-month low before paring losses on Friday. The pair was pressured early in the week by high US Treasury yields, concern over France’s economy and rising European energy costs. Eurozone inflation was above expectations at 3.8%, which increased pressure on the ECB to maintain a restrictive stance and raised market expectations for the possibility of another rate increase later this year. The euro recovered on Friday after US payrolls rose by only 29,000 in September. The weak number reduced market expectations for an October Fed rate hike.

 

Recap

Last week the S&P 500 fell 0.3%, the Nasdaq rose 0.5%, and the Dow Jones lost 1.3%, although the Nasdaq hit a record high on Friday after weaker-than-expected US jobs data reduced market expectations for a Fed rate hike this month. Crude oil, gold, silver, platinum and palladium prices fell, with the last three hitting multi-month lows. Markets continued to follow conflicting reports on the US-Iran conflict: Washington sent another aircraft carrier to the region, while Tehran considered the latest US peace proposal, which could potentially reopen the Strait of Hormuz and lift the US blockade. Technology shares were also helped after Nvidia CEO Jensen Huang and Elon Musk joined other leading tech executives at the White House. Tesla’s positive quarterly delivery numbers (486,532 vs 461,974 expected) also supported sentiment toward technology stocks on Friday.