Wall Street Has a New Problem… And It’s NOT Nvidia
Everyone is focused on $NVIDIA(NVDA)$ earnings tomorrow.
But the real pressure building under this market is coming from somewhere else:
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Bond yields are exploding higher.
And that changes EVERYTHING.
Here’s what happened in just 5 trading days
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10Y Treasury: 4.41% → 4.67%
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2Y Treasury: 4.12% (15-month high)
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30Y Treasury: 5.18% (highest since 2007)
That is NOT a normal move.
And markets are starting to react : $NASDAQ(.IXIC)$ : -0.8% . $S&P 500(.SPX)$ : -0.7% and Dow: -0.6%
The reason is simple:
Higher yields = more expensive borrowing Higher yields = lower valuations Higher yields = pressure on tech stocks
And guess which sector has been carrying this entire market? AI.
Nvidia earnings tomorrow are now bigger than ever.
NVDA
Wall Street expects:
+116% earnings growth and +79% revenue growth
Sounds incredible…But here’s the problem:
At current valuations, “great” may not be enough. Nvidia doesn’t just need to beat. It may need to DESTROY expectations to restart this rally.
Because right now the market is fighting two opposing forces:
Bull case:
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AI demand
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Earnings growth
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Tech momentum
Bear case:
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Inflation at 3.8%
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Bond yields surging
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Oil shock
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Fed staying restrictive longer
This is what many investors miss: Stocks don’t crash because earnings are bad…They struggle when valuations are too high AND money gets more expensive.
That’s exactly what bond markets are warning about right now.
Tomorrow is not just Nvidia earnings.
It may be the biggest test yet for the AI rally.
If Nvidia crushes: markets breathe again.
If Nvidia disappoints: yields could become the story nobody can ignore anymore.
Are you bullish or cautious heading into Nvidia?
The Calendar
Analog Devices, e.l.f. Beauty, Hasbro, Intuit, Lowe’s, Nordson, Nvidia, $Target(TGT)$ , and TJX Cos. announce earnings today.
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This summary is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making investment decisions.
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