Good morning. Here's what happened overnight and what you need to know today.
1.
Nvidia’s edge: Global markets were on edge ahead of Nvidia’s Q1 earnings, with its results seen as a bellwether for the AI-driven stock rally from April’s lows. Options trading signals the potential for a 6–7.4% swing in Nvidia’s shares after the results. The S&P 500 and Nasdaq showed caution closing little changed on the downside, with Treasuries rising. Analysts expect Nvidia’s earnings to be impacted by a US export ban on its H20 chips, which has slashed China sales, though many expect new AI chip deals in the Middle East and resilient demand will offset those losses. With investors holding an estimated USD7 trillion ($10.9 trillion) parked in cash funds, according to Bloomberg, a strong report could spark a big market rally and shift focus away from trade tensions and tariffs. (Bloomberg)(Forbes)(Reuters)
2.
Big v Beautiful: Elon Musk criticised Donald Trump’s so-called big, beautiful bill, saying “I was disappointed to see the massive spending bill, frankly, which increases the budget deficit,” adding it “undermines the work that the DOGE team is doing.” The bill, officially called the One Big, Beautiful Bill Act, narrowly passed the House and includes major tax cuts, military and immigration spending increases, and cuts to health, nutrition, education, and clean energy programs. The Congressional Budget Office estimated it would add USD3.8 trillion ($5.9 trillion) to the US deficit over 10 years, with national debt now at USD36.2 trillion. “A bill can be big or it can be beautiful,” Musk said. “But I don’t know if it can be both.” Asked about Musk’s comments, Trump declined to respond directly, but defended the bill as needed to avoid a 65% tax increase. Trump was also asked about the TACO trade, an acronym describing his tendency to back down from tariff threats: Trump Always Chickens Out. He called the question “the nastiest” and defended his approach as tough negotiation. (CNN)(NYT)(CNBC)
