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Good morning.
The AI industry as a whole is up, even though Nvidia is down. Maybe the fate of the entire AI trade isn’t resting only on Nvidia CEO Jensen Huang’s shoulders. He apparently still thinks it is, though: Huang reportedly looks in the mirror every morning and tells himself “You suck” so he doesn’t get overconfident.
Meanwhile, Fed governor Lisa Cook is suing President Trump for “firing” her. The war for the Fed rages on.
Today, the news gave us relatively tame inflation data in an as-expected PCE report, but some interesting trade ideas with $NVDA and $BTC. We cover them below.
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📰 Market Headlines
S&P 500 notched a new record Thursday, with the index closing at 6,498 as markets rallied on stronger-than-expected economic data.
The Dow inched up 0.2%, the S&P 500 climbed 0.4%, and the Nasdaq bumped up 0.5%.
The US economy expanded faster than initially reported in Q2, with GDP growth accelerating to 3.3% from the previously estimated 3.0% pace.
The upward revision came from significant business investment in AI, which rocketed 12.8% and marked the fastest expansion in four years. Consumer spending also ticked up to a 1.6% growth rate from the previously reported 1.4%.
New inflation data is in, and the numbers were nothing shocking. PCE and Core PCE rose by exactly how much the Fed expected them to. But rate cuts are still on the table for September—many feel that Fed Chair Jerome Powell made it clear in his Jackson Hole speech last week that the Fed will be using jobs data as their north star for rate cuts instead of inflation. Typically, interest rates rise when inflation grows. We are clearly in uncharted territory.
Nvidia shares slipped 0.9% despite posting better-than-expected revenue guidance. The culprit? Ongoing China trade tensions are casting a shadow over its business outlook. This could be a dip-buying opportunity for interested investors—key support levels to keep an eye on are $174, $159 and $150, but watch out for resistance at $183 (Investopedia).
Chart: Tradingview, Investopedia
Potential trade set up (not financial advice, DYOR):
Ticker: NVDA
⬇ Entry: ~$174–159 | Stop: ~$150
Target: ~$183+
And a potential warning for short-term Bitcoin traders: analyst Timothy Smith is seeing a possible bull trap in the BTC charts today (Investopedia). The two support levels to watch are $107,000 and, if BTC goes below that, $100,000. Smith expects resistance around the $117,000 area, where Bitcoin’s price has had difficulty breaking through since it fell below it a couple of weeks ago. Here’s how to trade it.
Weekly jobless claims continued their downward trend, falling 5,000 to 229,000 as the labor market remains stuck in what economists call a "no-hire, no-fire" mode.
Fed Governor Lisa Cook launched a legal challenge against President Trump on Thursday, filing a lawsuit that claims he lacks the authority to remove her from office. The case could redefine the central bank's independence just as markets brace for potential policy shifts.
😱 Fear and Greed Index
🤖 AI/Future/Tech News
Snowflake CEO Sridhar Ramaswamy pushed back against AI plateauing narratives, calling enterprise adoption still in "very, very early innings".
Intel pocketed $5.7 billion in cash from the US government for a 10% stake, with an additional 5% warrant that activates if Intel's ownership of its foundry operation drops below 51%.
🪙 Crypto
American Bitcoin, backed by President Trump's sons, aimed to start trading on Nasdaq in September with investment from both crypto and traditional investors.
BlackRock's iShares Bitcoin ETF vaulted to 745,357 BTC, eclipsing both Coinbase and Binance to become the world's largest institutional Bitcoin custodian.
JPMorgan analysts called Bitcoin's current price "too low" compared to gold and projected a $126,000 fair value by year-end.
The US government tapped Chainlink and Pyth to publish GDP, PCE price index, and other economic data on-chain, boosting transparency for DeFi protocols.
🚨 Trending on Reddit
Alibaba mentions are up, likely because of the development of a new AI chip, designed to be more versatile and serve a broader range of AI tasks. This move is seen as part of China's push for homegrown technology in response to regulatory issues faced by Nvidia, the leading AI chip giant, in selling its products in the country. Some users have expressed skepticism about the quality and authenticity of Alibaba's chips, while others are discussing potential impacts on Nvidia's market position.
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🤫 Insider Trading
📊 IPOs and Earnings
Affirm beat expectations with 27% revenue growth to 837 million and EPS of 11 cents, improving from a 14-cent loss last year; shares climbed 3% before close.
Best Buy exceeded earnings forecasts; shares tumbled 3.7% after maintaining full-year revenue guidance at $41.1-41.9 billion.
Bath & Body Works revised its full-year sales growth forecast to 1.5-2.7% and projected Q3 sales growth of 1-3%; shares fell 6.9% on the news.
Dick's Sporting Goods reported Q2 sales of $3.65 billion with profit of $4.71 per share; shares slid 4.8% after the company trimmed its gross margin target.
Dell Technologies projected $29.17 billion in revenue for July, a 17% year-over-year jump; shares rose 1.2%.
🎙 What Do You Think?
Is it overall good or bad that the stock market is so affected by Nvidia?
🎤️ What you said last time
🎪 Crowdfunding Showcase
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🧠 The Missing (Market) Links
39% of Nvidia’s revenue comes from just two mystery customers.
Morgan Stanley unveiled the "Humanoid 100", a list of companies positioned to win big from humanoid robotics. Over half are based in China.
One analyst warned that we’re in an everything bubble, with inflated valuations across stocks, real estate, and more.
Child-free Americans were the only group whose optimism about building wealth increased since 2023.
📜 Quote of the Day
“Only when the tide goes out do you discover who's been swimming naked.”
📢 We want to hear from you
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⭐️ What did you think of today's edition?
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Cheers,
Brandon & Blake of Invested Inc
Thumbnail image: Maurizio Pesce, Flickr
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