QCP Capital: Market closely watching tonight's NVIDIA earnings report, a drop in US stocks will increase crypto market risk
BlockBeats News, August 27th, QCP Capital posted on its official channel, stating that President Trump seems determined to form a closer-knit team within the Fed to tilt policy towards dovishness. Currently, Bowman, Waller, and Mester are widely seen as Trump supporters. If Governor Quarles is replaced, even without appointments to the two Vice Chair positions and the next Chair, the board's pro-Trump voice will increase to four seats.
Last week's Jackson Hole meeting redefined the Fed's risk balance. Officials expressed greater concerns about a slowdown in the labor market and noted the downward revision of nonfarm data. In our view, the labor market backdrop is now more prominent than the risk of inflation accelerating. This has paved the way for a rate cut in September—although a nonfarm and CPI data will be released before the FOMC meeting.
Furthermore, in the AI field, NVIDIA, a benchmark, will report earnings after today's market close. The market will closely watch NVIDIA's performance and guidance to see if there are signals that the revenue growth from AI spending remains resilient.
The recent weakness in the cryptocurrency market appears to be related to actual selling pressure from whales. If the US stock market declines from this point, traditional financial allocators' belief in Bitcoin may face a test, as a new round of risk is on the rise.
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