Hope you’re having a productive week. Nvidia is making headlines with its potential return to the Chinese market and upcoming AI earnings, while political and financial worlds collide with Trump’s actions affecting the Fed and crypto treasury.
Will Nvidia’s China strategy pay off despite geopolitical headwinds, and how will Trump’s moves reshape the Fed’s policies and market stability? Navigating these shifts will be crucial for investors.
In today’s financial recap:
Nvidia’s $50B China market return and AI earnings impact
Nvidia fires Fed Governor Cook, raising uncertainty
Trump Media and Crypto.com launch $6.4B crypto treasury SPAC
AI-powered logistics startup Nauta raises $7M
Nvidia’s $50B China Market Return and AI Earnings Set to Move Markets
The TradeWatch: Nvidia’s unique revenue-sharing deal to re-enter the Chinese AI chip market creates a $50 billion opportunity amid ongoing geopolitical tensions, while its upcoming earnings report will significantly influence AI and tech sector markets.
Unpacked:
Nvidia’s deal with the U.S. government to pay 15% of sales in China for export licenses has drawn bipartisan criticism, but also provides a pathway back into a critical market.
Despite strong demand, Beijing has urged domestic companies to limit purchases of Nvidia’s chips over security concerns, even as Nvidia continues to develop new and more powerful chips for China.
Options traders are pricing in a roughly 6% swing in Nvidia’s shares following the earnings report potentially leading to a $260 billion swing in market value.
Bottom line: Nvidia’s earnings will serve as a temperature check for the AI revolution, and a strong showing may reassure the market. The results will also indicate whether Silicon Valley and AI can keep driving market momentum amid concerns about overvaluation.
Trump’s Unprecedented Firing of Fed Governor Cook Raises Market Uncertainty
The TradeWatch: President Donald Trump’s unprecedented move to remove Federal Reserve Governor Lisa Cook has stirred market and geopolitical uncertainty but hasn’t derailed expectations of a September rate cut, according to recent reports.
Unpacked:
President Trump removed Federal Reserve Governor Lisa Cook, citing mortgage fraud allegations, though Cook denies these allegations and will fight the dismissal.
The markets still anticipate a rate cut in September, as shown by futures markets placing an 86% probability on that outcome following Powell’s Jackson Hole speech.
Trump’s move has increased pressure on the Fed, as seen in this BBC article, potentially influencing the central bank’s policy decisions, especially with a replacement for Fed Chair Jerome Powell on the horizon, but markets have seemingly backed off the initial reactions.
Bottom line: While the immediate expectation of a September rate cut remains intact, Trump’s actions inject long-term uncertainty into the Fed’s policy decisions and could lead to higher inflation and higher rates in the long run through the politicization of the Fed. The independence of the U.S. central bank has come under pressure, and the market will continue to watch this situation closely.
Trump Media and Crypto.com Launch $6.4B Crypto Treasury SPAC
The TradeWatch: Trump Media and Crypto.com have launched a $6.4 billion crypto treasury strategy through a new SPAC that will stockpile Cronos tokens, positioning Trump Media at the forefront of crypto treasury innovation linked to political and fintech dynamics.
Unpacked:
Trump Media and Technology Group (DJT) is partnering with Crypto.com to launch a crypto treasury firm focused on accumulating Crypto.com’s native token, CROS (CRO).
The new firm, Trump Media Group CRO Strategy, will trade under the ticker MCGA, with the goal to “Make CRO Great Again”.
The overall strategy includes an initial $200 million in cash to acquire more CRO, along with a $5 billion line of credit, as a strategic move intended to create buying power for its digital asset treasury.
Bottom line: This move signals growing confidence in digital assets and the strategic integration of blockchain technologies within established media companies; it also positions Trump Media as a significant player in the emerging crypto treasury landscape. Market reaction to the announcement was positive, with the Cronos price jumping 22% and trading volume surging 850% to $400 million.
AI-Powered Logistics Startup Nauta Raises $7M
The TradeWatch: AI-driven logistics platform Nauta secured $7 million in seed funding to transform global supply chain orchestration for importers, leveraging AI to replace outdated systems and improve decision-making.
Unpacked:
Nauta helps importers replace fragmented processes with a unified system of action, ingesting documents, tracking data, and ERP inputs to automate workflows and provide the real-time tools they need to respond proactively to supply chain disruptions.
Since its launch earlier this year, Nauta has expanded into seven countries and counts major global brands like New Balance, L’Oréal, and Moët & Chandon among its customers, demonstrating strong market validation and real-world impact on detention costs.
As trade uncertainty and geopolitical risks intensify, more than 70% of supply chain leaders have reconfigured their global networks in the past year, making AI-native logistics solutions like Nauta increasingly essential for importers seeking to maintain margins amid volatile tariffs and shifting regulations.
Bottom line: Nauta’s success shows how AI and machine learning can solve urgent problems in worldwide trade and supply chain management. By automating processes and improving decision-making, Nauta assists importers in streamlining operations, cutting expenses, and adjusting to rapid changes in the global market.
The Shortlist
3 Reasons to buy Super Micro Stock before it’s too late based on latest market insights.
A Road Map for the NASDAQ100 predicting significant movements based on market trends.
AbbVie’s Stock performance amidst industry shifts projected to impact the biopharmaceutical sector.
Cheers,
— Michael & the TradeWatch.io editorial team
