Bank of America Securities: Nvidia's earnings report may determine the success or failure of the US stock market rebound

Odaily News Strategists at Bank of America Securities expect Nvidia Corp.’s earnings report, to be released on Wednesday, to bring greater volatility than the next nonfarm payrolls, consumer price index or Federal Reserve decision. They urged clients to hedge the potential impact in case the earnings results are disappointing. “The market took a breather last week after the post-election rally, and we believe Nvidia’s earnings report will determine the market’s near-term direction,” the team, including Gonzalo Assis and Quan Oucheng, said in a note to clients on Monday. Bank of America Securities strategists said that when Nvidia is scheduled to release its earnings report on November 20, the implied volatility of the S&P 500 index is consistent with Nvidia’s own implied volatility, indicating that the risk posed by the earnings report is higher than the upcoming employment and inflation data or the Federal Reserve meeting. (Jinshi)