Key Takeaways
- Nvidia (NVDA) is set to delay the release of its new gaming chips and will also slash production of its current GeForce RTX 50 GPUs due to a significant memory chip shortage.
- The European Central Bank (ECB), under President Christine Lagarde, reaffirmed its commitment to stabilizing inflation at its 2% target and stated it does not target a specific exchange rate, while acknowledging the need to keep a close eye on currency movements.
- JPMorgan has declared Bitcoin more attractive than gold for the long term, citing an improved appeal despite recent crypto market weakness.
- The U.S. January jobs report has been delayed until next week due to a government shutdown, but preliminary data indicates a rise in initial jobless claims to 231,000, exceeding estimates.
- Pharmaceutical companies Eli Lilly (LLY) and Novo Nordisk (NVO) experienced stock declines following reports of a $49 generic weight-loss pill entering the market.
Semiconductor giant Nvidia (NVDA) is facing significant production challenges, with reports indicating a delay in the release of its new gaming chips and a reduction in the output of its current GeForce RTX 50 GPUs. This move is attributed to a pervasive memory chip shortage impacting the industry, signaling potential disruptions for the gaming hardware market throughout 2026.
In the Euro Area, ECB President Christine Lagarde provided an update on the economic outlook, emphasizing that the central bank's decision was unanimous and that the ECB is not pre-committing to a particular rate path. Lagarde reiterated that the ECB does not target an exchange rate but will keep a close eye on currency movements, noting that a stronger euro could push inflation further below its 2% goal. She described the current risk situation as "broadly balanced" but acknowledged the inflation outlook remains "more uncertain than usual."
Lagarde also highlighted that the ECB sees "continued moderation in labor costs" and that "most measures of longer-term inflation expectations stand around 2%." She pointed to a challenging trade environment due to tariffs and the euro's strength, urging governments to pursue reforms and strengthen the Euro Area in the geopolitical context. The ECB expects business investment to strengthen, with growth driven by services, manufacturing resilience, and picking up construction momentum.
Meanwhile, JPMorgan has issued a bullish outlook on Bitcoin, stating that the cryptocurrency is now more attractive than gold for the long term. This shift in sentiment comes despite recent crypto weakness, with JPMorgan noting that liquidations have been modest and spot Bitcoin ETFs continue to attract interest.
On the U.S. economic front, the highly anticipated January jobs report has been delayed to next week due to a government shutdown. However, preliminary data from Revelio Labs indicated a month-over-month decline of 13,300 in U.S. January Nonfarm Jobs. Separately, initial jobless claims for the week ending January 31 rose to 231,000, surpassing the estimated 212,000 and the previous week's 209,000. Continuing jobless claims also increased to 1.844 million, slightly below the 1.850 million estimate but up from the previous 1.827 million.
In corporate news, Eli Lilly (LLY) saw its stock decline following a Reuters report about Hims & Hers launching a $49 weight-loss pill. Similarly, Novo Nordisk (NVO) shares dropped as much as 7.5% on reports of a $49 Wegovy copy entering the market, intensifying competition in the lucrative weight-loss drug sector.
In other developments, former President Donald Trump reiterated his positive relationship with Venezuela, stating they are "getting along fantastically." Additionally, U.S. Senator J.D. Vance is scheduled to meet with Italian Prime Minister Giorgia Meloni tomorrow in Milan. The yield curve between two-year and 10-year Treasury notes was last reported at a positive 72.4 basis points. Sell-side analysis on Alphabet (GOOGL) was also circulating post-earnings.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.