It’s midweek, markets have closed for the day, and so far, I can confidently say: Trump really has it in for the Fed.
Quick Recap
The week started strong with housing data coming in at 652K, beating expectations of 635K, though slightly below the previous 656K. A positive start as markets eagerly awaited Nvidia’s earnings.
But the real story? Trump vs. The Fed. After taking aim at Fed Chair Powell with little traction, Trump has now targeted Fed Governor Lisa Cook over alleged mortgage fraud prior to her appointment. This is a big deal, investors rely on the Fed’s independence, and Trump’s decision to remove her pending investigation raises serious concerns.
We’ve also seen headlines about:
- Trump plans a White House meeting on Gaza ahead of the UN summit in September.
- Advocating for oil prices to hover around $60 per barrel.
- EU considering new sanctions on Russia.
- Mexico slapping tariffs on Chinese goods under the guise of boosting local production—a classic Trump-style move.
And then came Nvidia’s earnings:
Revenue hit $46.7 billion, beating estimates of $46.2 billion. Yet, the stock dropped post-report. Why? Investors expected more. Plus, we learned the U.S. government will take 15% of all Nvidia H20 sales to China—a stark reminder of the cost of doing business in the U.S.
Market Reaction
Since the start of the week, markets have been optimistic, as we discussed in our Market Outlook post. Equities have been pushing higher in anticipation of Nvidia’s earnings (can’t wait to see how the market opens tomorrow) and my positions are still in play.
- ETH is up about 9% after reaching a whooping 19% on Sunday. Take profit kids
- Closed out PALL (Palladium) at a 1.5% loss after an early-week pullback.
- Entered a position in XRP after a dip, riding the market optimism and we are currently up about 3%
What’s Next?
Key events to watch:
Thursday:
- Fed Governor Christopher Waller’s speech
- Unemployment data
- GDP data
Friday:
- PCE (Personal Consumption Expenditures) data
I’ll be monitoring these closely while managing positions.
Final Thoughts
We’re sitting at all-time highs, and chatter about a looming recession or market crash is getting louder. Where there’s smoke, there’s usually fire—so stay cautious and trade smart.
Disclaimer
This is not financial advice. The content shared here reflects my personal opinions and observations on current market events. Trades shared are for educational purposes only. IOY Capital is not responsible for any investment decisions you choose to make.
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