On the eve of Nvidia’s earnings report, market sentiment remains cautious; US stock index futures turn collectively higher, Japanese stocks and bonds both fall, and gold and silver rise together.

On the eve of Nvidia’s earnings report, market sentiment remains cautious; US stock index futures turn collectively higher, Japanese stocks and bonds both fall, and gold and silver rise together.

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Investors' concerns over the high valuation bubble in tech stocks and uncertainty surrounding the Federal Reserve's policy path have intensified, leading to heightened risk aversion and broad pressure on global stock markets.

On November 19, US stock index futures were mixed, most European stocks fell with a few gains, Asian stock markets fell for a fourth consecutive day, while the US dollar and US Treasuries remained mostly flat, and Japanese government bond prices declined. In commodities, both gold and silver rose, crude oil fell. In the cryptocurrency market, Bitcoin regained some lost ground after falling below the $90,000 mark.

The market focus is currently on the upcoming Nvidia earnings release, and sentiment is cautious. After US market close on November 19 (morning of November 20, Beijing time), Nvidia will announce its third-quarter financial results, which will not only reflect its own performance as the AI industry leader, but are also considered an important indicator of sentiment for the AI sector and global markets as a whole.

Bob Diamond, former CEO of Barclays and now head of investment firm Atlas Merchant Capital, said that the recent volatility in global markets is similar to a "healthy correction", with investors assessing all aspects of technological change. He stated:

“We have already seen risk assets repriced, but this does not mean we are entering a bear market.”

Key market moves:

US stock index futures turned higher as a group, with S&P 500 futures up 0.06%, Nasdaq 100 futures up nearly 0.02%, and Dow Jones futures up 0.03%.Euro Stoxx 50 index fell 0.02%, FTSE 100 rose 0.06%, France's CAC 40 down 0.04%, Germany's DAX30 down 0.06%.Nikkei 225 closed down 0.3% at 48,537.7 points. TOPIX closed down 0.2%. South Korea's KOSPI closed down 0.6%.10-year US Treasury yield held steady at 4.12%, while Japan's 10-year government bond yield rose by 2 basis points to 1.765%.The dollar index was basically flat at 99.582.Spot gold rose 0.5% to $4,089/oz, spot silver rose more than 1.2% to $51.34/oz, WTI crude oil fell 0.4% to $60.4/barrel.Bitcoin down 1.6% to $90,957.01, Ethereum down 1.8% to $3,040.81.

On the eve of Nvidia's earnings release, market sentiment has turned cautious, with US stock index futures mixed.The VIX index, which measures market fear, broke above 24, not only breaching the key psychological level of 20 but also hitting a near one-month high.

According to Strategas’Ryan Grabinski,Nvidia’s market capitalization has now exceeded the combined total of the energy, materials, and real estate sectors, even surpassing the size of entire sectors such as utilities and is larger than the whole industrial sector.He said:

“This result may trigger chain reactions in both US and international markets. Although the enthusiasm for AI has cooled somewhat in recent weeks, if Nvidia delivers results that exceed expectations, it is enough to rekindle optimism. Of course, the current market expectations for AI are already set very high.”

Another key concern for investors is whether the Federal Reserve will cut rates next month.Currently, swap trading showsthe likelihood of a December rate cut is less than 50%. The path of interest rates remains controversial, andsome policymakers have warned that lowering rates poses inflationary risks.

Japan's 10-year government bond yield climbed by 2 basis points to 1.765%, hitting its highest level since the global financial crisis in June 2008.

According to Wallstreetcn, behind the heavy selloff in Japanese bonds is the market's expectation that the government led by Sanae Takaichi may plan to introduce a supplemental budget far larger than expected, raising concerns that the massive expenditure will have to be financed by issuing a large amount of new government bonds, which would add additional supply pressure to the market.

Goushi Kataoka, economic advisor to Japan's Prime Minister Sanae Takaichi, stated that the Bank of Japan is unlikely to raise benchmark rates before March next year. According to Wallstreetcn, Kataoka said policy should first focus on stimulating domestic demand through large-scale fiscal spending, with monetary policy normalization coming later. This statement put a damper on the market’s aggressive rate hike expectations in the near term. The yen was basically flat against the US dollar at 155.36.

European stocks came under collective pressure, with the Euro Stoxx 50 index's decline widening to 0.3%.

Market caution and risk aversion boosted gold, with spot gold rising over 0.5% to $4,089/oz.

Risk warning and disclaimerThe market involves risk, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account the specific investment objectives, financial circumstances, or needs of individual users. Users should consider whether any opinions, views, or conclusions contained herein are suitable for their particular circumstances. Investment based on this article is at your own risk. ```