Dow Jones stalls near record highs ahead of key reports and Fed chair's speech

The Dow Jones Industrial Average consolidated around the 53,600 level after three consecutive days of gains. The prior upside impulse was driven by a strong recovery in the tech sector led by Nvidia and by a decline in Treasury yields. Further easing of inflation fears was caused by a drop in oil prices to two-week lows and the US Treasury's decision to double its buybacks of long-dated government bonds.

The market is now trading flat ahead of a series of major drivers: publication of the PCE inflation report, Nvidia's quarterly results, and Fed Chair Kevin Warsh's speech at the Jackson Hole symposium. Technically, the index remains in a long-term bullish trend near its all-time peak of about 54,700 points, but indicators signal some overbought conditions, increasing the odds of a local pullback. More details via the link.

US stock indices pause before NVIDIA results and inflation prints

After a positive close in the previous session, futures on major US indices eased moderately as investors pared risk ahead of Nvidia's quarterly report. The tech giant's market cap tops $5 trillion, so its results are viewed as the primary barometer of the whole AI industry. Traders expect revenue to roughly double, but the key issue will not just be beating estimates — it will be confirmation of sustained medium-term demand for AI technologies and continuation of a cycle of high capital expenditures.

Another trigger for markets is the expected release of the personal consumption expenditures (PCE) price index — the Fed's preferred inflation gauge. Economists forecast a slowdown in the reading to 3.6% year-on-year, which would materially reduce pressure ahead of Kevin Warsh's Jackson Hole address. Against this backdrop, the S&P 500 is trying to hold key support levels. It's convenient to monitor price moves and trade market reactions to Nvidia's report using InstaForex. More details via the link.

Rising concerns about US public debt sparked a dollar drop and a broad capital rush into emerging markets

A long-standing axiom has broken on global financial markets: rising US Treasury yields no longer automatically strengthen the dollar. Investor anxiety over the huge national debt and fiscal deficit has outweighed traditional monetary drivers, prompting market participants to price in an inevitable dollar devaluation scenario driven by future stimulus and higher inflation.

As a result, global capital has begun rotating rapidly into emerging-market and commodity assets that can offer higher real yields. The strongest gains are seen in currencies of commodity exporters such as South Africa, Colombia and Chile. More details via the link.

SpaceX and Nvidia join forces to launch the first orbital AI data center by late 2027

SpaceX and Nvidia announced a major technological alliance to deploy the Starmind AI1 satellite carrying Nvidia's cutting-edge Vera Rubin AI architecture. Elon Musk aims to launch the first orbital data center in Q4 2027, noting that orbiting servers could be substantially cheaper, more compact and more efficient than traditional ground racks. Nvidia's high-performance Vera chips will handle computing, data processing and power AI model Grok.

Despite the revolutionary nature of the partnership, the stock market greeted the news coolly, and both companies' shares slipped amid broader pressure on the tech sector. Investors focused on current industry risks, including strict export controls and rising memory-chip costs, although increased volatility in big-tech names is creating interesting trading opportunities. More details via the link.