Nvidia Earnings, Sterling Tests Highs Ahead of CPI

Equities

The FTSE 100 saw a modest drop of 0.1% on Tuesday. Amongst its constituents, AstraZeneca stood out with a 2.2% increase in its stock value, following the company's announcement of an ambitious revenue growth target. AstraZeneca aims to boost its revenue by 75% to reach $80 billion by 2030, a statement that likely contributed to its shares' rise. In contrast, the automobile and parts sector faced significant declines, with the Dowlas Group, owner of GKN Automotive, seeing its shares fall by 6.1% after warning of expected lower revenue for the year.

In the United States, market indices ended the day with slight gains. The S&P 500 added 0.25% to close at a record 5,321.41, while the Nasdaq Composite increased by 0.22%, reaching another record close of 16,832.62.

International Business Machines (IBM) gained 2.09% after announcing plans to release a suite of artificial intelligence models as open-source software. This move is expected to bolster IBM's standing in the burgeoning AI sector. Meanwhile, Lowe's reported an anticipated pressure on operating margins for the upcoming quarter, which resulted in a downturn in its stock price.

Nvidia, a major player in the AI and semiconductor sectors, also drew significant attention with its stock price increasing by 0.64% ahead of its quarterly earnings report. The company's options market indicates an expected 8.7% swing in stock price following the earnings announcement, highlighting the high stakes associated with this report.

The banking sector saw some recovery with JPMorgan Chase’s stock rising by 2.01%, partly recuperating from a 4.5% drop the previous day.

Forex & Commodities

The US dollar showed a slight increase against the euro, moving up to $1.0852, amid statements from Federal Reserve officials suggesting a cautious approach towards rate cuts until inflation aligns more consistently with the 2% target. The greenback remained relatively stable against other major currencies as traders anticipated the upcoming US Memorial Day holiday. The Japanese yen was marginally weaker against the dollar, trading at 156.20.

Gold prices have seen a slight decrease, trading at $2,413.50 per ounce, following a record high of $2,449.89 on Monday. Silver also fell to $31.70 per ounce after reaching an 11-year high earlier.

Oil prices continued their downward trend, with Brent crude dropping to $82.28 a barrel and West Texas Intermediate crude falling to $78.02. This marks the third consecutive session of declines.