Nvidia Earnings, Yen Weakness, and US Tariff Exemptions: Market Rundown

Nvidia Earnings and AI Trade

• 💡 Nvidia's earnings are a major focus this week, testing the strength of the AI trade after its stock surged over 1,000% since November 2022.
• 🚀 Nvidia recently became the world's first $5 trillion company, making its results the market's biggest story.

Japanese Economy and Geopolitical Tensions

• 📉 The Japanese yen is weakening against the dollar as the economy shrank 1.8% last quarter, largely due to falling exports to the US facing a 15% tariff.
• ⚠️ Shares in Japanese retail and tourism stocks declined due to a diplomatic row with China, with Beijing warning citizens against travel to Japan.
• 💰 High-spending Chinese tourists are vital to Japan's economy, and their absence could cause a significant hit.

US Economic Data and Federal Reserve

• 📊 Delayed US economic data, not released due to a shutdown, will be available this week but may be too old to significantly impact markets.
• 💬 Federal Reserve officials, including Waller, Williams, and Kashkari, are scheduled to speak, with markets assessing a 40% chance of a rate cut in December due to stubborn inflation.

US Tariff Exemptions

• ✅ The Trump administration has exempted 200 products from tariffs starting Friday, including groceries like bananas, coffee, orange juice, and beef.
• 📈 This move reverses the administration's stance, acknowledging the impact of higher prices on voters, particularly as beef prices have risen 13% in a year.