U.S. Indices closed lower on Wednesday, with the NASDAQ underperforming as the tech sector was sold. The sector was hit by reports by the FT that Oracle’s (ORCL) USD 190 billion Michigan data centre deal is in limbo after funding talks with Blue Owl (OWL) stalled. Oracle said the equity deal is still on schedule; however, ORCL shares still slid 5%. Meanwhile, chip names were weighed on (NVDA -3.9%, AMD -5.3%) on Reuters reports that Chinese researchers completed a working EUV prototype in early 2025 and are targeting 2028 for working chips, adding more competition in the tech space and reducing the need for chips from US companies in China. Meanwhile, Google (GOOGL) is reportedly set to collaborate with Meta (META) to expand software support for AI chips, according to Reuters; the project aims to make TPU run well on PyTorch as an alternative to NVIDIA (NVDA). In FX, the Dollar saw mild gains, but the Japanese Yen was the clear laggard, giving up some of its recent gains ahead of the Bank of Japan on Friday. Gold and Silver added to recent gains, with Silver hitting a fresh record high. T-notes ultimately settled flat, but commentary from Fed Governor Waller took T-notes off low, before paring ahead of the 20-year bond auction, which was ultimately in line with recent averages. Energy prices were bid, driven by worsening US-Venezuela relations and potential new energy sanctions on Russia from the US. Looking ahead, the focus on Thursday is the CPI and Jobless Claims data, while the Bank of England and ECB rate decisions are due – BoE widely expected to cut by 25bps, with the ECB widely expected to keep rates on hold. Fed Member Waller the influential Governor spoke extensively on a wide range of topics. On monpol, he noted that the Fed is 50-100bps over neutral, and there is no rush to cut rates given the outlook, he further added that the Fed can continue to bring the rate down, but it is unclear how much support there is for that on the Fed. As a reminder, in the post-FOMC press conference, Powell said the Fed rate is in a “plausible range of neutral”, but it is “at the upper end.” Re. the labour market, Waller noted it is “very soft” and current payrolls are weak, which are 50-60k overstated, close to zero growth, once again echoing Powell, who said jobs are 60k overstated. The Governor added that the job market says the Fed should continue to cut rates and is not seeing the job market go off a cliff. On the other side of the mandate, inflation, Waller said, expectations are anchored, and it is above target but should come down over the next few months. Ahead, Waller expects 1.6% GDP growth this year, versus the Fed SEP median 2025 GDP growth of 1.7%. In addition, he reiterated familiar rhetoric that he does not expect to see more big increases in tariffs. Lastly, the balance sheet says new Fed asset buying is not stimulus, and reserves are “pretty” close to ample. Waller noted that the balance sheet is at the level the Fed wants. Elsewhere, Oil closed higher by 2% while Gold ended Wednesday’s session with a 0.7% gain.
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For anyone following my Platinum Service it made 160 points yesterday and is now ahead by 2387 points for December after ending the month of November with a gain of 4542 points, after ending October with a nice gain of 5110 points after closing September with a gain of 3774 points while ending August with a gain of 3362 points after closing July with a gain of 3753 points after closing June with a gain of 3530 points, having closed May with a gain of 3606 points, after closing April with a gain of 7685 points after closing March with a gain of 2254 points while closing February with a gain of 4180 points. January ended with a gain of 2768 points while 1997 points were gained in December. October ended with a gain of 2179 points, after closing September with a gain of 4402 points, following a loss of 301 points in August. July gained 1908 points while June saw a gain of 2074 points. The Platinum Service made a record 9619 points in October 2022. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 2300 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
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