Powell Signals September Rate Cut

Dovish Fed signals lifted risk appetite and rate-cut odds. Traders now eye Nvidia’s results and India tariff risk into week’s open.

TL;DR:

• 🏦 Powell hints at September cut
• 🌏 Asia stocks rally on Fed shift
• 🧠 Nvidia earnings in focus today
• 🛃 U.S. tariffs pressure Indian rupee

Powell Hints at September Cut

Fed Chair Jay Powell indicated a possible interest rate cut in September, citing risks that elevated borrowing costs pose to the labor market. The dovish tilt firmed market expectations for policy easing and supported equities while pressuring front-end yields. Traders will watch incoming data to confirm the path toward a cut. Source

Asia Stocks Rally on Fed Shift

Asian shares advanced after Powell’s remarks, with futures pricing an 84% probability of a quarter-point Fed cut in September. The dollar softened at the margin as risk appetite improved, and regional tech led gains on easier policy hopes. Sentiment remains data-dependent into U.S. releases later this week. Source

Nvidia Earnings in Focus Today

Markets are braced for Nvidia’s results, with consensus looking for roughly a 48% year-over-year EPS increase. Given AI leadership and mega-cap weighting, an upside or downside surprise could ripple across semiconductors and broader indices. Options pricing implies elevated move risk into the print. Source

U.S. Tariffs Pressure Indian Rupee

The Indian rupee remains under pressure as steep new U.S. tariffs on Indian goods are set to take effect on August 27, tied to India’s purchases of discounted Russian oil. Bond markets are tracking fiscal developments, while FX desks watch for further USD/INR strength if trade frictions escalate. Local risk assets may stay volatile into the deadline. Source