We talked about Nvidia's earnings last week, the most important company in the world.
Remember, there was no growth contribution from "compute" (i.e. GPUs) in the quarter. Rather, ALL of the data center revenue growth came from networking equipment.
As we've discussed for several quarters, Taiwan Semiconductor seems to have hit capacity/ a hard ceiling on advanced chip production — at least in what it's capable of producing for Nvidia.
With that in mind, declines in the stock have been fairly typical for Nvidia following earnings (exception this past May). And it looks like we're getting another one.
With Nvidia representing 8% of the S&P 500, and 10% of the Nasdaq 100, the post-earnings selling will weigh on the big indices.
That said, with stocks coming off from record highs, we get a new record high in gold today, and silver trades to near $41.
What was happening last time the price of silver was here? It was September of 2011, and 10-year Greek government bond yields were spiking to 26%.
This time around, the French government bond market is the spot to watch. France has debt levels well above 100% of GDP, with stall speed growth, and a 5.8% budget deficit.
And the European Commission has committed them to massive defense and AI spending, to be funded through an even bigger deficit (i.e. more debt).
With that, the 10 year yield on French government bonds traded near 14-year highs today — a threat to breakout.
