Fragile market sentiment sets the stage for a crucial week, with Nvidia earnings and Jackson Hole firmly in focus. AI financing concerns are growing as Big Tech spending accelerates, free cash flow comes under pressure and investors become increasingly sensitive to the cost of funding the AI boom. Even stellar Nvidia results may therefore struggle to impress.
Meanwhile, the macroeconomic backdrop remains challenging. Elevated energy prices, stubborn inflation and rapidly growing US debt are keeping pressure on long-term yields. Treasury Secretary Scott Bessent is trying to contain borrowing costs, while Fed Chair Kevin Warsh favours allowing markets to play a greater role in pricing risk.
Who ultimately controls the long end of the US yield curve — the Treasury, the Fed, or the bond market itself?
Watch the full episode to find out more!
Intro0:55 Week starts with limited appetite
3:17 Nvidia earnings
4:25 Jackson Hole: Warsh vs Bessent
