Financial Analyst/Content Writer, RADEX MARKETS
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
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Nvidia (NVDA) published its highly anticipated third-quarter report late on Wednesday night, and to everyone’s delight, the company beat earnings and issued a strong outlook for fourth-quarter revenue. The New York Stock Exchange was exuberant the following morning, with Nvidia and the wider stock market opening high. Celebrations were quickly cut short however, with markets undergoing a dramatic shift mere hours later as heavy profit-taking took hold. By the end of the day, Nvidia was over 3% down, dragging everything down with it. The Nasdaq Composite closed Thursday’s session 2.2% in the red, while the S&P 500 and Dow Jones lost 1.6% and 0.8% respectively. The selloff exposes the lingering fears of a tech bubble, as investors were happy to take the exit door despite the stronger-than-expected earnings report.
Markets also faced the added complication of yesterday’s delayed September NFP publication. The report revealed that the US labour market added 119,000 new jobs in September, completely surpassing the expected figure of around 50,000. Good news on the face of it, but the latest numbers complicate the Fed’s path forward. The odds of a December rate cut were around 50/50 before the latest data release, but are now leaning 65/35 in favour of a rate hold. An environment of strong employment numbers, coupled with stubbornly high inflation, is not typically countered by lowering interest rates. Strength has certainly returned to the Dollar this week, pushing the DXY back over 100 yesterday. Other currencies are feeling the wrath of the Greenback, none more so than the Yen, which fell to 157 against the Dollar over the past couple of days and is now approaching yearly lows. Should expectations continue to shift away from a December rate cut, the Dollar may encroach even further on the majors before the year is over.
The relentless selling in Bitcoin continued yesterday, this time driving prices down to $86,000. Bitcoin has lost $40,000 since the 6th of October, but the price action in the last ten days has been particularly brutal, with no relief to be found. If there is a silver lining, it is that the wider crypto markets are once again showing more backbone, leading to further declines in Bitcoin dominance. No one in their right mind is calling for alt season as of yet, but the limited contagion is at least somewhat encouraging.
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