Global Markets Hold Ahead Key Data: Tech Earnings Support, FX Subdued

Global financial markets traded in relatively range bound on Thursday, as investors digested a mix of corporate earnings and awaited fresh signals on U.S. inflation.

Equity markets held steady, while currency and bond market volatility remained subdued, underscoring a cautious tone before the release of the Fed’s preferred inflation gauge—the Personal Consumption Expenditures (PCE) Price Index.

Tech & AI Sector in Focus: Nvidia Earning Beats

The spotlight remained on the technology sector after Nvidia’s earnings beat expectations, reinforcing optimism about continued demand in artificial intelligence. While Nvidia’s outlook helped bolstered sentiment, investors were reluctant to chase further gains, with broader tech indices showing signs of fatigue after recent rallies.

The earnings narrative highlighted both the strength of select AI-related names and the broader market’s sensitivity to concentration risks in U.S. equities.

Muted FX and Bond Moves

In the foreign exchange market, the U.S. dollar traded narrowly, with investors largely sidelined ahead of the PCE release. Major currency pairs also traded at tight range as investors remain on the sidelines.

Treasury yields saw minor adjustments but stayed within recent ranges, reflecting a balance between expectations of eventual Fed rate cuts and lingering uncertainty over inflation dynamics.

PCE Data Set as Catalyst?

Looking ahead, the July PCE Price Index will be the week’s most closely watched data point. A softer reading could reinforce expectations that the Federal Reserve is moving closer to easing later this year, while a stronger figure may reignite concerns about sticky inflation and push back policy-pivot bets.

That said, recent Fed commentary on its updated inflation framework suggests that PCE data may not dramatically shift global sentiment — unless the reading comes in meaningfully above expectations, which could force markets to reassess the policy outlook.

VIX Volatility Index | Source: Ultima Market MT5

The CBOE Volatility Index (VIX) remains anchored near recent lows, signaling that investors are not positioning aggressively ahead of the PCE release. This subdued backdrop reflects confidence in the resilience of the tech sector and expectations for relatively stable inflation.

Still, volatility could return swiftly. With the Fed’s preferred inflation gauge due later this week, an upside surprise could trigger a sharp repricing of rate-cut bets and fuel a spike in market swings.

Disclaimer

Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.