Nvidia's stock skyrocketed after exceeding Q1 2024 revenue expectations by 233%. This rally, adding $277 billion to its market value in a single day, is a world record and suggests Nvidia is on track to become a $2 trillion company within a year. Analysts remain bullish, citing Nvidia's "seemingly insatiable" AI demand and "early innings" dominance in key growth areas. Contras argued that hardware businesses ran strong but ran out faster as there would be a limit to the underlying growth of businesses that utilised them. However, the sheets don't lie, and its booming growth has made it the sixth largest company by market cap, a shining success for the Californian-born tech emperor.


U.S. equities are on euphoria with Nvidia's blowout earnings that ignited a global risk-on rally. The Dow, S&P 500, and Nasdaq closed at record highs, with the latter narrowly missing its November 2021 peak. While economic data remained supportive, Fed officials hinted at potential rate cuts later in the year that helped the dollar, although temporary. Key movers included Moderna's post-earnings jump, Rivian's plunge, and Wayfair's positive surprise. The chip sector and AI-linked stocks rallied, reflecting Nvidia's momentum and broader tech optimism.


Gold prices are set to gain this week, inching up 0.3% as a weaker dollar, although the Asian session saw cautious trading that may depress it back into a downtrend. Physical buying, particularly by central banks, and the greenback's retreat helped build the rally. Economic data is favourable to dollar strength, but it is too early to tell.


Oil prices rebounded after initial volatility as concerns eased over inventory buildup. Geopolitical tension surrounding Yemeni threats to Red Sea shipping further supported prices as they boasted of a new submarine weapon. However, energy stocks dipped pre-market, reflecting broader market unease.


The dollar was volatile but eventually closed higher on Thursday, supported by strong US labour data that may support early rate cuts. The euro gained slightly, while the yen remained above 150 per dollar despite Japanese intervention warnings. The yuan edged lower even on stimulus, while the Aussie dollar rebounded from lows. Overall, the dollar is set to go lower as investors price rate cuts.