Despite a somewhat disappointing end to the trading session yesterday, today US stock indices are widely expected to recover and continue the rally they opened the week with.
Sentiment remains risk-positive as investors try to evaluate how seriously the Federal Reserve will take the recent surprisingly high upticks in inflation. In fact, Randal Quarles, the Vice President of the Federal Reserve, will speak later today for the first time since those reports were published. Many would look to his statements to dispel or confirm suspicions that the Fed is considering tapering its asset purchase program sooner than planned on account of the improvements in the US economy.
The speech will come ahead of some crucial inflation reports that are due at the end of the week, so its impact will likely be limited and overshadowed by the actual numbers that drop later this week.
On the earnings radar today we have NVIDIA, whose graphics cards have notably gone up in price due to the increased demand for cryptocurrency-mining-capable computers around the world. Urban Outfitters, American Eagle Outfitters, and Nordstrom are also notable names to report their most recent profits today.
Speaking of cryptocurrencies, today we see Bitcoin back above $40,000. Cryptocurrencies are recovering from their recent losses thanks to efforts to make the sector more sustainable. Tesla CEO Elon Musk met with some of North America’s most prominent cryptocurrency miners and managed to form the Bitcoin Mining Council.
This brand-new organization will help provide more transparency on the energy usage of mining cryptocurrency and encourage a switch to renewable energy sources, while also advocating for a greater acceptance of cryptocurrencies as a reliable payment method.
Other big names in focus today will be all major American banks such as Goldman Sachs, JPMorgan Chase, Morgan Stanley, and more, whose CEOs will be testifying before the Senate. Institutional problems, especially exacerbated by the pandemic, are likely to be prominent in the hearings.
