Major indices are moving higher ahead of Nvidia’s (NVDA) report, after the bell. Moreover, investors are reacting to the latest State of the Union address.

The magnificent seven are higher across the board, with Nvidia(NVDA) leading the charge ahead of earnings.

Six sectors are moving higher, with Technology (XLK) in the front. The move in Technology is being driven by continued dip-buying, as well as, indications of a prolonged memory supply shortage (more below). Financials (XLF) is also benefiting from buying the dip action, particularly in banks. On the other side, Energy (XLE) is at the bottom of the list as oil prices edge lower following indications from OPEC+ delegates that the group will resume modest supply hikes.

Notably, a respondent to the Dallas Fed survey released yesterday indicated that the memory supply shortage is expected to become more pronounced and may reach pandemic-like supply constraint levels. In addition, they indicated prices jumping 50% in the last two week.