Nvidia, stagflation risks loom, but BofA sees autumn dip as entry point for bulls

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Bank of America said investors may find an attractive buying opportunity if markets experience a pullback in the autumn, as volatility looks set to rise from unusually subdued levels.The bank noted that the VIX index had recently fallen to year-to-date lows after Federal Reserve Chair Jerome Powell’s dovish Jackson Hole remarks, but with equities trading near highs and worries mounting over a potential AI bubble and political risks to Fed independence, such calm conditions are unlikely to last.Analysts flagged several risks that could unsettle markets, including Nvidia’s earnings report and the possibility of “stagflationary” data that may constrain the Fed from easing policy.Even so, BofA argued that any correction should prove temporary. Pullbacks are common during asset bubbles, but with volatility measures not yet signaling a true market top, and with dip-buying activity running at one of its strongest levels since the global financial crisis, the bank expects any autumn sell-off to be quickly absorbed. Supportive reactions from both Powell and President Trump to potential market stress were also cited as likely stabilizing forces. ----Re NVDA, earlier:Nvidia (NVDA) earnings report: EPS $1.05 vs. expected of $1.01Nvidia (NVDA) threatens litigation if US government seeks to take a percentage of revenueNVDA Huang:China market, I've estimated, to be about $50bn opportunity for us this year" This article was written by Eamonn Sheridan at investinglive.com.