Daily market update: Nvidia, BP, Shell

Markets have adopted a similar pattern over the last six months as investors have responded to the latest mood music from the Middle East.

Discussions between Iran and Oman over the establishment of a temporary corridor through the Strait of Hormuz, US sanctions on Tehran which were less strict than expected, and hints at continuing diplomatic efforts have helped bring Brent crude oil down to $86 per barrel.

This has helped take the edge off market fears about inflation and brought government bond yields down. The improving picture helped fuel a recovery in Asian stocks and saw a steady open in Europe, with the FTSE 100 back within sight of the all-time highs achieved at the end of last month.

In London, stocks which benefit from a gentler outlook on inflation and borrowing costs, like retailers and housebuilders, were among those chalking up gains along with travel-related names. Miners were also helped by strong copper prices, as the market adjusts for potential US import tariffs next year.

Lower energy prices meant BP and Shell were on the back foot, along with data and software names which have been plagued by fears over AI disruption for large parts of 2026.

Assuming there is no major movement in either a positive or negative direction in geopolitical terms, tonight’s second quarter results from Nvidia are likely to set the tone for markets through the remainder of the week.

Investors typically assume Nvidia will always beat expectations, so the AI chip giant will have to produce or say something very special to truly impress the market.

Should Nvidia guide for revenue of $100 billion for the third quarter, it’s possible to see investors in party mode. The company is moving closer to this threshold, having chalked up $81 billion in the first quarter, with second-quarter revenue of $92 billion forecast.