NVIDIA smashes sales records despite market jitters

While AI demand remains strong and results topped expectations, uncertainty about NVIDIA’s outlook in China cast a shadow. Back in April, the Trump administration halted sales of NVIDIA’s China-specific H20 chip, and negotiations to resume those sales are still unresolved.

Inflation in the US showed little change in July. The core Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred gauge, rose 0.3% month over month, matching both June’s pace and market expectations.

Meanwhile, the economy looked stronger than initially thought. The Commerce Department’s revised estimate for second-quarter GDP growth in the US, showed the economy expanding at an annualised rate of 3.3%, up from the earlier 3.0% reading. Greater business investment and resilient consumer spending powered the upward revision.

US Treasuries delivered gains over the week. Yields on short, and intermediate-term maturities moved lower, while longer-dated yields were little changed. However, the yield curve steepened early in the week after President Trump rattled markets by announcing his intent to dismiss Federal Reserve Governor Lisa Cook, citing unverified allegations of mortgage fraud. This news brought concern to markets over Fed independence.

In Europe, the European Central Bank (ECB) held its deposit rate steady at 2.0% in July. At the Federal Reserve’s Jackson Hole Symposium, ECB officials signalled that another rate cut is far from imminent, citing the eurozone economy’s resilience. However, fresh data from the eurozone’s largest economy suggested price pressures are still simmering, with the German inflation rate rising to 2.1% year over year in July, up from 1.8% previously.  

Equities

Global stocks finished down -0.2% in euro terms and down -0.3% in local terms last week. Year-to-date global markets are up by 0.7% in euro terms and up by 13.8% in local terms. The US market, the largest in the world, finished slightly up at 0.1% in euro terms and down -0.1% in local terms.

Fixed Income & FX

The US 10-year yield finished at 4.2% last week. The German equivalent finished at 2.7%. The Irish 10-year bond yield finished at 3.0%. The Euro/US Dollar exchange rate finished at 1.17, whilst Euro/GBP finished at 0.87.

Commodities

Oil finished the week at $64 per barrel and is down -20.9% year to-date in euro terms. Gold finished the week at $3,448 per troy ounce and is up 16.4% year-to-date in euro terms. Copper finished the week at $9,822 per tonne and is up 0.6% year-to-date in euro terms.

The week ahead

Tuesday 2^nd September

Eurozone CPI data is released.

Thursday 4^th September

US PMI data is reported.

Friday 5^th September

US nonfarm payrolls for August go to print.