Two jet packs combine: Nvidia, Fed cuts
US stocks extended their rubber band rebound (Nasdaq +2.2%, S&P500 +1.1%), closing at their highest levels since late August, thanks to big tech buying. Two key drivers fueled the heat:
Firstly, annual core inflation matched expectations (+3.2% YoY), validating that the Fed can cut rates by 0.25% next week as expected. Meanwhile, monthly core inflation crept a little higher than expected (+0.3% vs. 0.2%), and Goldman Sachs' CEO hinted that the Fed might cut rates by 0.5%. This "wave through" of a likely Fed rate cut gave stocks the green light to move higher.
Then, Nvidia CEO Jensen Huang amped up the second jet pack for stocks when he revealed at a Goldman Sachs conference that demand for their latest tech is "so great" it's making customers tense. "Everyone wants to be first and everyone wants to be most," he said. Nvidia's stock soared 8%, adding a whopping $216 billion in market value. Microsoft got a lift as OpenAI is in talks to raise $6.5 billion from investors.
Plus, risk-on sentiment got a boost with Blackstone's CFO saying they're optimistic about a soft landing and that inflation is basically at target. After the Trump-Harris debate, solar companies got a bump since both candidates "like solar," while prison operators dipped.
Looking ahead, the futures suggest the Aussie share market will follow Wall Street and rise 0.7%.
Keep an eye on iron ore stocks as the price bounced off its lows, trading at $92.74—still down 23% from Mays highs. Some iron ore stocks, like Mineral Resources, are seeing upgrades based on their “cheap” valuations, with Morgan Stanley raising it to overweight.
Oil prices are also up 2%, although they'e down 11% for the month and 12% for the quarter. While that's good for consumers and businesses using oil, oil sellers like Woodside Energy, trade down 19% this year, still offer one of the ASX's most attractive mega-cap dividends (8.3% yield)
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Jooooohn : With your powers combined! I am Captain Planet!!!
山芭佬 :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Bullish Law : Hopefully the movement up has begun
Jessica Amir OP Jooooohn : I love it when the fudamentals and techncials combine. Look at the Nvidia MACD. Looks bullish on the day charts.
I love where your mind went. "Captain Planet. He is our hero. "Gonna take polution down to Zero"."
Jessica Amir OP Bullish Law : The fudamentals and techncials combine again and look really positive. Look at the NVDA MACD. Looks bullish on the day charts.
But expect bumps! The rest of the month could be choppy