US stocks on Wednesday rose for a second consecutive day to a 3-week high, but lost momentum this morning. NVIDIA’s earnings report for the fourth quarter of 2025 was significantly higher than analysts’ previous expectations. However, investors remain cautious about an AI-bubble similar to the dot-com bubble of the early 2000s.

NVIDIA Quarterly Earnings Report

Analysts deem NVIDIA’s quarterly earnings report as considerably positive with the company’s earnings, stock ratios and guidance topping previous expectations. The company’s sales surged from $57 billion to more than $68 billion. In addition to the company’s sales, the Earnings Per Share rose to $1.62, again beating analysts’ previous expectations.

A huge contribution to the growth was AI and data centre hardware. However, investors continue to worry that the pace of sales increases and dominance cannot continue. Many economists also believe that the pace of AI development will have a domino effect on the rest of the economy.

For this reason, the price movement of the stock after hours was unnatural as investors continue to play tug of war. At first, the stock rose 4%, but then fell back to the stock price close. As a result, NVIDIA continues to show signs of struggling to break out of its current recurring price range.

Nonetheless, the positive factors of the earnings report cannot be ignored. Even though investors have not bought the opportunity, this does not mean they will not throughout the day. Currently, the NASDAQ’s price still remains above the key moving average despite the dip this morning. In addition to this, the RSI also remains in the positive zone. As a result, technical analysis continues to point towards the NASDAQ rising or at least maintaining recent gains.

CEO Jensen Huang argued that customers are making money from their newly acquired computing power and will keep investing at elevated levels.

Gold and US-Iran Negotiations

Gold prices this morning have risen, but are finding some resistance during the opening of the European trading market. A key price driver for Gold will continue to be negotiations between Iran and the US.

On February 19th, President Trump gave Iran a 15-day deadline to reach a nuclear agreement after talks stalled. He warned that limited airstrikes remain possible but said diplomacy is still the priority. Markets remain cautious amid rising US military activity in the Middle East and Iran’s pledge to respond if necessary. Reports suggest Tehran may offer partial concessions, including transferring 20–25% of enriched uranium abroad, which could ease short-term tensions but not broader uncertainty.

Investors are also watching US trade policy after the Supreme Court ruled against Trump’s emergency tariffs on over 100 countries. In response, he announced a temporary 15% blanket tariff for 150 days, raising concerns about supply chains and dollar-based trade.

Markets now focus on US jobless claims and upcoming producer inflation data. Softer inflation could increase expectations for up to three Fed rate cuts this year, while attention is also turning to the selection of a new Federal Reserve chair when Jerome Powell’s term ends in May.

Japanese Yen

The worst performing currency of the week has been the Japanese Yen due to the tone of the government towards the Bank of Japan. However, the price has shown signs of forming a retracement or correction after declining for two consecutive weeks. This morning, the Japanese Yen is the best performing currency, with the price movement largely due to technical reasons.

The government has added members to the Bank of Japan’s committee. Among the new members are Toichiro Asada, Professor Emeritus at Chuo University, and Ayano Sato, Professor at Aoyama Gakuin University. Experts suggest that these appointments could complicate the implementation of a ‘hawkish’ policy stance.

There is a clear intention to ensure the Bank of Japan’s rate hikes are few and far apart. As a result, the Japanese Yen does continue to remain weak, but investors will be eagerly watching for new signals. If the price rises above $156.422, buy signals will point towards a new bullish impulse wave. However, if the price falls below $155.854, short-term sell signals will remain.

Key Takeaway:

• US stocks climbed to a three-week high before losing momentum after NVIDIA’s earnings report.
• NVIDIA beat earnings expectations with strong AI-driven revenue growth.
• CEO Jensen Huang argued that customers are making money from their newly acquired computing power and will keep investing at elevated levels.
• Investors remain cautious about a potential AI bubble despite strong results.
• Markets are closely watching US-Iran tensions, trade tariffs, and upcoming US economic data.
• The Japanese yen remains weak amid expectations of limited rate hikes from the Bank of Japan.