AI fever has propelled the Nasdaq to a more than 12% gain this year, while the Philadelphia SE semiconductor index – or SOX – is up a staggering 21.5%, giving both plenty of room to fall.
Nvidia’s options signal volatility ahead: They’re primed for an 8.7% swing in either direction by Friday, equivalent to $200 billion in market cap.
Next in the rankings, at least from a global investor’s perspective, is the minutes of the Federal Reserve’s most recent policy meeting.
While the meeting predates the widely welcomed downside surprise in U.S. CPI from last week, it will still be parsed carefully for clues on the likely policy path, particularly as Fed officials have so far refused to turn sanguine on inflation risks.
Governor Waller, Vice Chair of Supervision Barr and no fewer than three regional Fed chiefs all urged continued patience overnight, adding to a chorus that has been building by the day. Chicago Fed boss Goolsbee takes the podium later today.
The dollar has been content to drift sideways to slightly higher against its major rivals this week.
