Last Friday, Jerome Powell finally changed his tune on the subject of interest rates, saying that a change in the Fed’s stance may be warranted. The comments came during the annual Jackson Hole symposium in Wyoming, where the Fed Chairman cited the growing risk of rising unemployment. The shocking jobs figures revealed by the July NFP report seem to have forced the Federal Reserve to pivot, paving the way for a rate cut in September. Markets reacted positively to Powell’s remarks, pushing all three major indices to make strong moves to the upside and raising the Dow Jones to a new record high. Predictably, the prospect of a rate cut weighed on the Dollar, dragging the DXY down the better part of a percent to 97.7. Gold meanwhile made marginal gains, pushing the precious metal to $3,371 per ounce by the weekly close. For all the optimism, a rate cut is by no means set in stone; Jerome Powell was deft enough to leave himself some wriggle room in this regard. The decision is still three weeks away after all and a number of data releases will grace the economic calendar before then.
Nvidia (NVDA) will release their quarterly earnings after the bell on Wednesday. The tech giant rose in tandem with the broader market last Friday but the latest earnings may test the resolve of some investors. There are growing worries that the hype surrounding Artificial Intelligence may be a little overblown, a sentiment echoed by OpenAI CEO Sam Altman himself, who last week drew parallels between the current investment frenzy and the dot-com bubble in the 90s. A devastating investigation by MIT meanwhile revealed that 95% of generative AI projects had failed to yield any profit. Rough verdict.
Very little to speak of in terms of tradeable events over the coming week. Nvidia is the only heavy hitter with regards to earnings, with most other reports coming from the financial sector. US GDP drops on Thursday but the more impactful event is likely to be the PCE price index on Friday, followed by Michigan Consumer Sentiment later in the day.
Эрсдлийн дохио : Худалдааны дериватив ба хөшүүрэг бүтээгдэхүүн нь өндөр түвшний эрсдэлтэй байдаг.
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