As markets await Nvidia’s quarterly results, uncertainty has taken hold of the technology sector
Uncertainty has taken hold of the technology sector and, as markets await Nvidia’s quarterly results, doubts are growing about the sustainability of the AI rally. In the background remain assessments of the health of the U.S. labor market and the Federal Reserve’s decisions. Sentiment is deteriorating across financial markets, with global equities and bonds approaching key technical levels. Equities and bonds are uncertain, while commodities show a mixed picture.
Our intermarket dashboards indicate a weakening in sentiment, which remains in neutral territory but is worsening. The S&P 500/VIX ratio has fallen to its late-October lows, while the S&P 500/Nasdaq ratio has returned to its one-year average. Both global equities and global bonds are testing the area near their 50-day moving average—an important first test to understand whether the recent loss of momentum is temporary or signals something more substantial.
On the macroeconomic front, the day brings few data releases. Worth noting are U.S. industrial orders for August 2025, ADP’s weekly employment report, and the New York Fed’s services sector survey.
Our forward-looking analyses still indicate an uncertain day for equity markets. Signals are mixed for commodities, while in the bond segment a wait-and-see stance remains for corporate debt. Volatility is stable.
In brief
A neutral day is expected for equities
A negative day is expected for US equities
A neutral day is expected for European equities
A neutral day is expected for Asian equities*
A neutral day is expected for bond yields
A neutral day is expected for commodities
A day with increasing volatility is expected
Here's an overview of the individual assets analyzed…
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