{"id":119242,"date":"2025-08-27T15:31:18","date_gmt":"2025-08-27T12:31:18","guid":{"rendered":"https:\/\/ironfx-com.wp-dev.int.theitops.net\/?p=119242"},"modified":"2025-08-27T15:32:03","modified_gmt":"2025-08-27T12:32:03","slug":"equities-report-fed-chair-powells-pivot","status":"publish","type":"post","link":"https:\/\/www.ironfx-cn.com\/th\/equities-report-fed-chair-powells-pivot\/","title":{"rendered":"Equities report:\u00a0Fed Chair Powell\u2019s pivot"},"content":{"rendered":"

Since the start of the week the NASDAQ and the S&P500 have moved higher. We are to review the release of the Fed Chair Powell\u2019s speech on Friday, the upcoming earnings report from Nvidia, the issues surrounding the Fed\u2019s independence and are to conclude the report with a technical analysis of S&P 500\u2019s daily chart.<\/p>\n\n\n\n

Fed Chair Powell\u2019s \u2018dovish\u2019 speech<\/strong><\/a><\/h2>\n\n\n\n

Fed Chair Powell\u2019s speech at the Jackson Hole Symposium occurred on Friday, and through his comments, it appeared to showcase a dovish pivot in the Fed\u2019s monetary policy approach. In particular, we are referring to the following statement that \u201cNonetheless, with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance\u201d. The Fed Chair comments showcase a willingness to ease the tight financial conditions which may be surrounding the US economy. Thus the comments by the Fed Chair may have aided the US Equities markets following their release. However, it should be said that with the US PCE rates due out this Friday the narrative could possibly change. Specifically a hotter than expected inflation print could \u2018twist\u2019 the Fed\u2019s hand and possibly increase pressure on the Fed to withhold from cutting rates, which may then weigh on the US stock markets. On the other hand, should the inflation print showcase easing inflationary pressures in the US economy it may have the opposite effect which may then aid the US Equities markets. In our opinion for the \u2018dovish\u2019 narrative from the Fed to change, the inflation print may have to substantially deviate from the current expectations by economists.<\/p>\n\n\n\n

NVIDIA\u2019s earnings report due out today<\/strong><\/h2>\n\n\n\n

Nvidia\u2019s earnings for the quarter are set to be released today post market. The current expectations by analysts are for the company\u2019s EPS figure to improve from $0.76 to $1 and for their revenue to also increase from $44.06 billion to $45.81 billion. In turn should the company beat it\u2019s earnings expectations it may aid their stock price and vice versa. However, we are slightly more interested in the company\u2019s forward guidance and the recent developments over their H20 chips and how their sales may be affected in China, as it may have a more significant impact on their stock price overall.<\/p>\n\n\n\n

Fed independence at stake?<\/strong><\/h2>\n\n\n\n

Acording to a statement by the Fed \u201cLisa Cook has indicated through her personal attorney that she will promptly challenge this action in court and seek a judicial decision that would confirm her ability to continue to fulfill her responsibilities as a Senate-confirmed member of the Board of Governors of the Federal Reserve System,\u201d referring to the notice provided by President Trump that she is removed from her position. In turn, the continued battle between the US Government and its perceived attacks on the independence of the Federal Reserve could weigh on the US Equities markets in the short term. However, should the opportunity arise for the Trump Administration to appoint more \u2018doves\u2019 in the Federal Reserve, it may instead aid the US stock markets as the power pendulum may swing in favour of further rate cuts rather than maintaining interest rates steady.<\/p>\n\n\n\n

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US500 Daily Chart<\/strong><\/h2>\n\n\n\n
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