Investors expressing concern over emerging data pertaining to MSCI World ETF
The MSCI World ETF has surpassed its previous record high, but investors are now keenly awaiting two significant events that could shape the ETF's near-term trajectory.
As the chart below from Tradingview shows, the MSCI World ETF has more than compensated for the Deepseek crash, reaching new heights. However, the ETF seems to be losing momentum, barely maintaining its ascent along the blue trendline. Two crucial dates are fast approaching:
A Pivotal Date for the MSCI World ETF: February 26
On this day, Nvidia is slated to reveal its Q1 earnings. Besides having a 4.08% stake in the MSCI World ETF, Nvidia's performance could slightly impact the ETF. Moreover, investors are eager to learn from Nvidia's results about the global economy and the strategic moves of other major tech companies. Should Nvidia present impressive results with a robust order intake, it could signal a rise in the MSCI World ETF until mid-March. Conversely, if the earnings disappoint, and there's a notable drop in orders for AI chips, the blue uptrend line may come under pressure.
Four Weeks of Anticipation: March 19
Following Nvidia's earnings announcement, attention will shift back to the US Federal Reserve's monetary policy meeting, which took place on March 19. The Fed's monetary policy is critical, as a loose policy usually bolsters stocks, while a restrictive policy can serve as a drag. President Trump would like to see interest rates reduced further to boost the economy. However, the Fed is cautious about preventing inflation from spiraling out of control. It is expected that the interest rates will remain at the current level of 4.25-4.50% in the US, but investors hope for a hint from the Fed regarding future interest rate cuts in the year.
MSCI World ETF investors remain vigilant, keeping a close eye on February 26 and March 19.
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Additional context: In Q1 of 2023, Nvidia is projected to report strong revenue growth, with a projection of $43.38 billion (66% year-over-year increase), and earnings per share around 74 to 87 cents. However, potential challenges, such as the China H20 ban, could affect its revenue and margins.
Should Nvidia's earnings surpass expectations, it could support the tech sector, benefiting the ETF. Yet, the ETF's performance will also be influenced by broader economic conditions and investor sentiment. The Fed's monetary policy decisions, too, can significantly impact the market and the ETF's performance, due to their impact on interest rates and investor sentiment.
Investors are preparing for two significant events that could impact the MSCI World ETF's performance: Nvidia's Q1 earnings on February 26, which might influence the ETF due to its 4.08% stake, and the US Federal Reserve's monetary policy meeting on March 19, whose decisions can affect interest rates and investor sentiment, thereby shaping the ETF's trajectory. Furthermore, the technology sector, particularly Nvidia, could influence investing opportunities in ETFs, as its performance indicates global economic trends and the strategic moves of other major tech companies.
