Fed's Interest Rate Divide and NVIDIA's Results Challenge the Boundaries of AI Enthusiasm
- U.S. Fed minutes and NVIDIA's Q3 earnings will test AI optimism amid policy uncertainty and governance scrutiny. - Fed's October rate cut debate reveals internal divisions, while ethics probes into Kugler's trades raise transparency concerns. - NVIDIA faces $54.9B revenue test for AI chips, with market valuations hinging on its ability to sustain growth amid short-seller bets. - Strong NVIDIA results could reinforce AI sector momentum, while weak performance risks dampening tech stock enthusiasm.
This week, all eyes are on the U.S. Federal Reserve and
Recent turmoil at the Fed has heightened the importance of these minutes.
The direction of Fed policy remains unclear. At the October meeting, the committee approved a 25-basis-point rate cut, but opinions were divided: Miran pushed for a 50-basis-point reduction, while Kansas City Fed President Jeff Schmid opposed any cut
NVIDIA, now the world’s most valuable company, is also at a crucial point. The chipmaker’s third-quarter results, expected Wednesday, will gauge the strength of ongoing investment in AI infrastructure.
At the same time, the implications reach beyond NVIDIA itself. The company’s performance could either support or undermine the lofty valuations across the AI sector, which have soared on speculative enthusiasm.
This week’s economic agenda also includes important releases such as the September employment report and housing starts, but the main focus remains on the Fed and NVIDIA. With markets balancing policy uncertainty and AI momentum, volatility is likely to stay high.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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