Financial Analyst/Content Writer, RADEX MARKETS
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
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Wall Street got exactly the confirmation it was hoping for late on Wednesday night, after Nvidia (NVDA) not only smashed expectations on its latest earnings report but also reassured investors that demand for AI infrastructure remains sky-high for the foreseeable future. CFO Colette Kress estimated that the chipmaker could achieve 70% revenue growth in 2028, and that this figure was constrained not by demand but by supply concerns. CEO Jensen Huang went on to claim that sales could in fact double if it were not for the supply limitations currently throttling the semiconductor industry. The figures are there for all to see and the conclusion is an obvious one: demand in the AI sector is so high that manufacturers simply cannot keep up. Nvidia shares rose the better part of 9% on Thursday, the largest daily gain in over a year. The report also struck a chord with the wider tech sector, pushing Intel (INTC) and Broadcom (AVGO) over 4% higher during yesterday’s session; the Nasdaq 100 index climbed 1.4% when all was said and done. Further afield, markets have remained quiet in the latter half of this week, with the DXY treading water above 99 points, gold clinging on to $4,600 per ounce, crude oil rising marginally to $88 per barrel, while the only real outlier was Bitcoin, which finally managed to register a daily close above $80,000 for the first time since May.
With Nvidia out of the way, attentions will turn to the Jackson Hole Symposium, which is now entering its second day. Federal Reserve Chairman Kevin Warsh is scheduled to speak at 10am Eastern Time and is expected to address the central bank’s path forward with regard to interest rates. The new chairman is still relatively new in his role and has adopted a much more tight-lipped stance than his predecessor. The Fed has essentially abandoned any form of forward guidance, leaving markets with very little to grapple with, making today’s statement all the more critical. Commentary pertaining to inflation will be particularly scrutinised, as will any reaction to the Treasury’s bond intervention last week. High inflation is obviously a problem, but the question floating around is how much of it is due to temporary causes and how much of it has a deeper, structural origin. Concerns around growth also factor into the equation; if the US economy can grow faster than the government’s borrowing costs, the debt-to-GDP ratio can stabilise, making predictions about an AI-fuelled economic boom all the more pertinent. Later today, the Bureau of Labor Statistics will publish the first annual revision to last year’s non-farm payroll count, contributing yet another argument for or against the strength of the US economy.
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