Daily Commentary: August 27, 2025

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Nvidia Earnings Today

Posted by Pete Stolcers on August 27
www.oneoption.com

This tech giant will post results after the close today and it will impact the market.

PRE-OPEN MARKET COMMENTS WEDNESDAY – The market is searching for a driver and Nvidia earnings is the biggest news event this week. To put this into perspective, the $4T market cap is larger than the GDP of Germany. The growth prospects are healthy and good, but the stock is trading at an all-time high. Will they be good enough?

Nvidia will be able to sell to China as part of the trade deal with the US. That should be good for future guidance. AI is the hot theme and NVDA is leading the charge. Most mega cap tech stocks have had fairly muted reactions after releasing earnings. I am expecting the same from NVDA and the options markets are pricing in a 6% move one way or the other.

Tomorrow we will get the second look at GDP. A reading of 2% is expected and this “pop” from last quarter was largely attributed to a drop in imports since they are subtracted from GDP. I will be watching initial jobless claims. They increased to 235K last week. This will provide some insight into next week’s jobs report.

The market has been in a lethargic light volume float higher. The dips are brief and shallow and we have seen marginal new highs. Buyers are barely in control. Traders are waiting for the Fed to ease in September and that is keeping a bid to the market while economic conditions slip.

The little dip last week was quickly erased after Fed Chairman Powell’s speech in Jackson Hole last Friday. Half of that long green candle held and yesterday we closed near the all-time high. That confirms that the candle was legitimate.

Overseas markets were mixed.

We have Nvidia earnings after the close today and a light round of economic news tomorrow. If the reaction to both is muted (likely), the market will stagger into the holiday weekend. Keep it light and focus on buying dips.

Support is the low from yesterday and resistance is the all-time high.

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