Fed Poised for First Rate Cut in Years Amid Market Speculation and Tension  The financial markets are anxiously awaiting a significant decision by the Federal Reserve (Fed), which is poised to cut interest rates for the first time in years. According to a survey of economists by Bloomberg, a 25 basis points (bps) reduction is expected. However...

ECB Cuts Rates to 3.50%, Revises Inflation and Growth Forecasts  The European Central Bank (ECB) has reduced interest rates by 25 basis points, lowering the deposit facility rate to 3.50%. This action is in line with the ECB's ongoing strategy of data-dependent monetary policy. In addition to the rate cut, the ECB announced that it will reduce...

Rising US Debt Crisis: How Reckless Borrowing Threatens Stability  Today, the U.S. federal debt has skyrocketed to $35.3 trillion, with a staggering increase of $1.9 trillion in just under a year—despite a period of strong economic growth and record tax revenues. The Treasury projects an additional $16 trillion in debt by 2034 if current polic...

Fed Rate Debate: 25bps or 50bps? CPI, PPI, and Market Volatility Loom  After a generally quiet week following payroll data, markets are now focused on the upcoming Fed decision, with debate intensifying between a potential 25 basis point (bps) and 50 bps rate cut. According to Jim Reid from Deutsche Bank, even though the Fed has entered its me...

Fed Faces Rising Inflation Risk as Expectations Show Signs of Rebound  With the Federal Reserve now focused on employment under the belief that inflation has been controlled even though this may not be true as we discussed in Powell Vows To Cut Rates With Stocks Home Prices Rents And Food At All-Time Highs there is a rising risk that the Fed w...

Global Markets Weekly Wrap KW 36 : Economic Slowdown Fears Drag Stocks Lower, Tech and Energy Hit Hard  Concerns over a potential U.S. economic slowdown led to a significant drop in the stock market, with the S&P 500 experiencing its largest weekly decline in 18 months. Technology stocks were hit the hardest, especially after rumors surfac...

Bank of Canada Cuts Rates Again Amid Inflation and Economic Concerns  Hungary ends its rate cuts as prices rise and the currency weakens becoming the first central bank to conclude its easing cycle prematurely. Other central banks still have some time before reaching this point. The Bank of Canada recently reduced its overnight lending rate by...

Tech Stocks Plummet as NVIDIA Leads Major September Market Decline We highlight that September is historically the toughest month for the overall market especially for tech stocks True to form today has been brutal for the tech sector particularly the Magnificent 7 with NVIDIA plummeting as much as 8 percent falling below 110 dollars and the s...

Global Markets Weekly Wrap KW 35 : European Inflation Eases, Mixed U.S. Stock Results  European inflation approaches central bank targetU.S. Stocks ended the week with mixed results during light pre-holiday trading. Major indexes showed varied performances as traders reduced activity ahead of the holiday weekend. The Nasdaq Composite, heavily ...

Fed Rate Cuts Won't Prevent Rising Government Debt and Interest Costs  Even if the Federal Reserve implements the over 200 basis points of interest-rate cuts anticipated by the market, it won't significantly reduce the rapidly increasing interest payments on government debt. This makes it more likely that the government will issue more debt an...

Nvidia Nears World's Largest Company Status with Strong Q2 Earnings  For the second year in a row, Nvidia has maintained its status as the world's most important company, with its market cap rising over 150 percent year-to-date to reach 3.1 trillion dollars. This growth has significantly outperformed the Nasdaq, bringing Nvidia close to becomi...

Nvidia Poised for Q2 Earnings Beat Amid Strong AI Demand  Nvidia remains a significant player in the stock market, though current investor positioning around the $125 mark doesn't seem as crowded as it was during previous quarters. According to Goldman trader John Flood, the current positioning is rated an 8.5 out of 10, slightly less concentr...

Inflation Data and Nvidia Earnings Highlight Key Economic Events  Next week, inflation will be a key focus, with significant reports such as the US PCE, preliminary August CPI data in Europe, and Tokyo's CPI. Galina Pozdnyakova from Deutsche Bank also notes that consumer confidence and economic activity indicators will be released across major...

Fed's Easing Bias Sparks Market Rally Amid Renewed Inflation Risks  Nomura's Charlie McElligott warns that the recent surge in stock prices may leave many investors behind once again. Following a significant deleveraging event, fear of missing out (FOMO) is driving a rush into index options, with traders scrambling to capitalize on the rising ...

S&P 500 Nears Record Highs Amid Bullish Outlook, Key Risks Ahead  The S&P 500 is nearing its all-time high, even with declining yields, increasing concerns about economic growth, and a Federal Reserve that is starting to acknowledge significant challenges ahead. Goldman Sachs' Scott Rubner is closely monitoring this potential high, exp...

Hedge Funds Shift Strategies Amid Market Rebound and Record Highs  Last weekend, we reported that according to Goldman's Prime Desk, as stocks continued their rebound from the post-August slump, hedge funds, who had turned very bearish before the late-July downturn and then briefly became bullish, resumed selling and shorting stocks. A week la...

Global Markets Weekly Wrap KW 34 : U.S. Investors Anticipate Rate Cuts , European Stocks Surge  U.S. Markets:Investors welcomed Federal Reserve Chair Jerome Powell's indication of impending interest rate cuts, pushing the Dow Jones Industrial Average and the S&P 500 Index closer to record levels. The market rally was broad-based, with smal...

Powell Signals Dovish Shift as Markets React to Cooling Labor Data  Powell has made his move, and it's a stark contrast to two years ago when he warned of impending "pain" amid soaring inflation. This time, his tone is much more dovish. With inflation now seemingly behind us, Powell has completed his pivot, emphasizing that the labor market is...

Retail Sales Report Hides Economic Risks: Delinquency Rates Surge  The most recent retail sales report has given Wall Street a reason to celebrate, with headlines highlighting the strength of consumer spending and fueling optimism for a "soft landing" in the economy. However, a closer examination of the data reveals a more concerning reality b...

Global Central Bank Leaders to Join Jackson Hole, Powell's Speech Key  The Jackson Hole schedule was released last night, revealing that Norges Bank Governor Ida Wolden Bache and Bank of Brazil Governor Roberto Campos Neto will join ECB Board Member Philip Lane on the Saturday panel discussion. Both Wolden Bache and Campos Neto have recently e...