The outlook for US equity markets will depend partly on how concerns surrounding Nvidia's leadership unfold, while uncertainty over the ongoing conflict in the Middle East continues to make oil prices difficult to predict, Seth R. Freeman, Senior Managing Director at GlassRatner Advisory & Capital Group LLC, told NDTV Profit.
Freeman said investors and analysts would closely watch developments around Nvidia for the rest of the week, given the company's importance to the wider technology industry and its close business relationships with suppliers and customers.
He also cautioned that the recent recovery in US equities may not be enough to signal a sustained improvement in market sentiment.
Nvidia's Business Model Raises Concerns
Freeman said he had earlier described Nvidia as a pyramid scheme because of the company's investments in its suppliers, customers, and other businesses connected to its operations.
He believes these interconnected investments could make the company vulnerable if one part of the business structure weakens.
"I was on the record, I think, six weeks ago or so here on NDTV referencing Nvidia as a pyramid scheme. And it really is. Nvidia used a lot of money to invest in its suppliers, in its customers, and so forth. And it's kind of like a pyramid that if one piece is pulled out, it could topple the whole thing," Freeman said.
He added that analysts would be watching the impact of the latest developments on the company and the broader market.
Oil Prices Remain Difficult To Predict
On the outlook for crude oil, Freeman said it was difficult to determine whether the recent decline in prices would continue. He pointed to the changing situation in the Middle East and the possibility of fresh developments affecting oil supplies.
Although a large volume of oil appears to be moving through the Strait of Hormuz, Freeman said the situation could change at any time.
"It's really hard to predict where oil's going. The other day, the war was not over, and there was speculation about blowing up the mountain where supposedly the radioactive material is stored. So it changes every day," he said.
Freeman also pointed out that lower crude prices had not yet translated into significantly lower petrol prices for consumers.
India Sees Foreign Fund Inflows
Discussing foreign fund flows into India, Freeman acknowledged the recent inflows but did not attribute them to any single market development.
He said the direction of oil prices and geopolitical developments would remain important factors for oil-sensitive economies, including India.
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