Market snapshot: calm before the American storm?

US markets drifted overnight during a period of calm before the potential storm ahead this week, with consumer confidence, GDP, inflation, NVIDIA Corp (NASDAQ:NVDA) and Jackson Hole all in focus.

• Our Services: SIPP Account | Stocks & Shares ISA | See all Investment Accounts

In the technology space, there was some caution ahead of numbers from the much-vaunted Nvidia after markets close tomorrow. Expectations are sky high and more recently the stock has struggled to advance after its reporting updates, despite shooting the lights out on any number of occasions. The stock has managed a gain of 10% so far this year, but share price strength has been most notably seen elsewhere in the sector, such as Micron Technology Inc (NASDAQ:MU) which has added almost 190% in that time.

Even so, the caution dragged the likes of Micron lower by almost 6%, while Advanced Micro Devices Inc (NASDAQ:AMD) fell 3% and the iShares Semiconductor exchange-traded fund (ETF) by a similar margin. It remains to be seen whether Nvidia will be able to initiate the next leg of the rally, which may require not only stellar numbers, but an equally tantalising outlook for its prospects.

• Insider: has this senior FTSE 100 director spotted a bargain?
• Must read weekly preview: Prudential, Nvidia

The trailed US announcement of the “economic asphyxiation” of Iran was delivered, and turned out to be something of a damp squib. Whereas the administration expanded secondary sanctions and issued new ones on 60 individuals, companies and vessels, driving the Iranian currency to record lows, the intended consequences to isolate the country are far from guaranteed.

It is estimated, for example, that 90% of Iran’s oil is exported to China, and there are certainly no indications that the Chinese would be prepared to cut economic ties, which immediately punches a hole through the US plan. For its part, Iran said it was prepared for the additional sanctions and was confident that its major trading partners would not succumb to this US pressure.

• 10 hottest ISA shares, funds and trusts
• eyeQ: M&G, Barclays, United Health

Elsewhere, the Treasury seemed far from daunted by the lukewarm reaction to its bond intervention last week as it was reported that it could use its $1 trillion (£730 billion) General Account to ramp up purchases further. Yields on the 10-year and 30-year Treasuries fell marginally on the news, but the underlying fact remains that much of the bond market concerns has more recently turned towards the national debt, on top of any inflationary pressure resulting from the conflict in the Middle East.

Adding to the weight on investor sentiment, the economic spat between the US and Canada escalated once more with either side standing firm on intentions to increase tariffs on the other. Consumer confidence data later today may provide further clues about the level to which inflation, economic growth and interest rate concerns are beginning to filter through.

• eyeQ: a key metric for smarter trading decisions
• Fund Focus: bond funds yielding more than the FTSE 100

In the meantime, the main indices are still in healthy territory, with the Dow Jones ahead by 11.1% in the year to date, with a gain of 11.8% for both the benchmark S&P500 and the Nasdaq.

The FTSE100 opened ahead, with the slight fall in the oil price providing some relief for International Consolidated Airlines Group SA (LSE:IAG), while Next (LSE:NXT) and Marks & Spencer Group (LSE:MKS) edged higher on broker upgrades.

In the FTSE250, an announcement from Vistry Group (LSE:VTY) that it had secured a significant grant as part of the government’s £39 billion Social and Affordable Homes Programme provided a rare glimpse of optimism, lifting its shares by more than 9%, with some positive read across to Persimmon (LSE:PSN) and Barratt Redrow (LSE:BTRW) in the primary index.

• Shares for the future: can this small-cap deliver another slice of strong growth?
• Sign up to our free newsletter for investment ideas, latest news and award-winning analysis

Elsewhere, Melrose Industries (LSE:MRO) spiked by 8% after confirming that the Orange County District Court in California had closed its criminal investigation into an overheating tank at the GKN Aerospace Garden Grove facility resulted in the evacuation of local residents. A $100 million damages claim will follow, but the decision removes a raft of uncertainty which had been overhanging the shares.

More broadly, the gain for the FTSE100 leaves the index ahead by 9.5% in the year to date and again potentially set to test the record closing high set in February, with that target just 0.3% away.