Wall St Focus: NVDA Misery, Fed Turmoil 28/08/2025

HOT stories for today

US market wrap:

• Markets extended their winning streak on Wednesday, with the S&P 500 and Nasdaq Composite each edging up about 0.2%. The broad benchmark notched another record close, while the Dow Jones Industrial Average gained 0.3%, as investors braced for Nvidia’s earnings after the bell. Shares of the chipmaker slid despite topping most analyst expectations, as a strong quarter appeared muted against the backdrop of years of outsized revenue surges.
• Meanwhile, traders largely shrugged off political noise surrounding the Federal Reserve’s independence. Earlier this week, President Donald Trump told Fed Governor Lisa Cook she was dismissed, a move Cook intends to contest in court. On Wednesday, Trump’s chief economic adviser, Kevin Hassett, said Cook should take leave from the central bank despite her plans to pursue legal action.
   

Nvidia misses Wall Street’s AI faith

• Nvidia posted stronger-than-expected profits and upbeat guidance late Wednesday, but second-quarter data center revenue fell slightly short of forecasts, sending shares lower after hours. The segment still jumped 56% year over year, making up nearly 90% of sales, although export curbs on chips to China weighed on the results.
• Analysts called the initial selloff an overreaction. Gene Munster of Deepwater Asset Management said the miss reflected export rules, not waning demand, and predicted the stock could rebound as investors focus on solid guidance. Susquehanna’s Chris Rolland similarly described the quarter as “just fine.” The report comes as enthusiasm for AI names has cooled. Nvidia, the first company to hit a $4 trillion valuation and now 8% of the S&P 500, is viewed as a barometer for the trade. Strategists warned that if the stock drifts sideways, the broader market may pause, with attention likely shifting back to the Federal Reserve’s rate path.

Stocks on the move:

• Snowflake (SNOW): rose 12% after exceeding Q2 expectations with adjusted EPS of $0.35 on $1.14B in revenue, compared to forecasts of $0.27 and $1.09B, and provided optimistic guidance.
• NetApp (NTAP): dropped over 6%, as Q1 earnings of $1.55 per share on $1.56B in revenue were only slightly above estimates, with guidance remaining in line.
• CrowdStrike (CRWD): declined nearly 8% in late trading. Although results beat expectations, its operating margin decreased year over year, and Q3 revenue guidance of $1.21–$1.22B fell short of the $1.23B consensus.
• Nutanix (NTNX): fell 5% despite beating expectations in Q4, as its Q1 and full-year revenue forecasts of $670–$680M and $2.9–$2.94B roughly matched Wall Street estimates.

Watchlist: NVDA, SNOW, NTAP, CRWD, NTNX, BOX, URBN

Today’s action

• Asia-Pacific equities were mixed Thursday as traders digested the Bank of Korea’s latest policy call. The central bank held rates steady at 2.5% for a second meeting, matching expectations despite lingering trade headwinds. Japan’s Nikkei 225 edged up 0.24%, while Hong Kong’s Hang Seng lost 0.79% and the mainland CSI 300 slipped 0.18%.
• U.S. stock futures retreated on Wednesday night as Wall Street assessed Nvidia’s quarterly results. S&P 500 futures were down 0.3%, Nasdaq 100 contracts slipped nearly 0.5%, and Dow futures eased 12 points, or 0.03%. Markets today will digest Nvidia’s earnings reaction while shifting attention to the Federal Reserve and the escalating clash with former President Trump. On the data front, U.S. GDP and weekly jobless claims are due before the opening bell.

Bitcoin

• In crypto markets, retail traders continue to buy Bitcoin (BTC) at dips in both spot and futures markets, although persistent selling by larger players has capped momentum. Analysts say the risk of another liquidation cascade toward $105,000 has eased, but sentiment remains out of sync with broader volume data.
• Bitcoin (BTC) traded at $112,899, up 2.4% from Monday’s $108,665 low. Ether (ETH) recovered more strongly, gaining 8.3% from its $4,310 trough to an intraday high of $4,663 before easing to $4,572.
  Watchlist: Bitcoin: 99 000-125 000, Ethereum: 4000-4980, Solana: 160-214
   

Forex

• EUR/USD ticked higher toward 1.1650 in Thursday’s Asian trade as the dollar came under pressure. The move followed dovish comments from New York Fed President John Williams, who stressed the need to wait for more data before firming up expectations for a September rate cut. Political uncertainty in France, where opposition parties are unlikely to back PM Bayrou’s confidence vote, added to euro-area headlines.
• USD/JPY eased to around 147.20, with the greenback weighed down by concerns over Fed independence after former President Trump’s latest attempt to oust a Fed governor. Hawkish remarks from BoJ chief Kazuo Ueda, who noted conditions for another rate hike are forming, also lent support to the yen. Traders now look ahead to the U.S. GDP revision, jobless claims, and pending home sales later in the session.
  Watchlist: EUR/USD: 1.0700-1.1700, USD/JPY: 140-151

Basic Materials

• WTI crude slipped to $63.40 in Asian trading Thursday, giving back prior gains as signs of softer U.S. fuel demand emerged with the summer driving season nearing its end. Traders are also monitoring India’s stance on U.S. pressure to curb Russian oil imports, while ongoing attacks on Russian energy infrastructure could offer price support ahead.
• Gold (XAU/USD) held near $3,397, edging up 0.12% as markets price in a roughly 90% chance of a September Fed rate cut. New York Fed’s John Williams reiterated a data-dependent stance, keeping upcoming PCE, CPI, and jobs reports in focus. Tensions between the White House and the Fed underpinned safe-haven demand, though bullion needs a clear break above $3,400 to build momentum.
  Watchlist: GOLD: 2600-3500, US Oil: 55.60-75.80

Key Economic Events Today:

EST time
08:30 am: USD Prelim GDP
08:30 am: USD Unemployment Claims
10:00 am: USD Pending Home Sales
06:00 pm: USD FOMC Member Waller Speaks
 

Earnings

BMO (Before the US Market opens):

TD                       Toronto Dominion Bank
LI                         LI Auto Inc.
DKS                     Dick’s Sporting Goods Inc.
DG                       Dollar General Corp.
AMC (After the US Market closes): DELL, MRVL, AFRM, ULTA

 

The TEFS Analyst team wishes you a successful day!