Nvidia (NVDA) didn’t disappoint with its latest earnings report. To say that it blew past expectations is an understatement as shares blew up by nearly a fifth just three days later. But, this was an isolated incident, which is what worries some analysts.
Previously, Nvidia’s stock moves helped bring the rest of the market up. This time around, the chipmaker’s earnings release didn’t even make a budge.
According to Evercore ISI’s Julian Emanuel, this could lead to increased volatility as investors focus their attention on economic indicators and interest rate expectations. He suggests that a potential market correction is coming, noting that large-cap stocks’ correlation with each other has decreased in recent memory.
Market strategists like Truist Co-CIO Keith Lerner, however, didn’t mince words. He explains that the market ahead could get worse within the next few months as investors shift their attention towards economic data and Federal Reserve policies.
Nevertheless, Lerner believes that the market remains bullish despite some short-term turbulence as investors look for other market movement indicators with Nvidia no longer having as much of an impact as a catalyst.
Ultimately, most experts expect a more volatile period characterized by unstable dynamics like earnings, economic data, and interest rates.