QCP Capital: Market closely watching tonight's NVIDIA earnings report, a drop in US stocks will increase crypto market risk

On August 27th, QCP Capital announced on its official channel that President Trump appears to be determined to form a more closely-knit team within the Fed in order to tilt policy towards dovishness. Currently, Bowman, Waller, and Mester are widely regarded as Trump supporters. If Governor Quarles is replaced, even without appointing to the two vice chair positions and the next chair, the pro-Trump voice on the board will increase to four seats. Last week's Jackson Hole meeting redefined the Fed's risk balance. Officials expressed greater concerns about a slowdown in the labor market and noted the downward revision of nonfarm data. In our opinion, the labor market background is now more prominent than the risk of inflation accelerating. This has laid the foundation for a rate cut in September—although nonfarm and CPI data will be released before the FOMC meeting. Furthermore, in the AI field, NVIDIA, a benchmark, will report earnings after the market closes today. The market will closely monitor NVIDIA's performance and guidance to see if there are signals indicating that the revenue growth from AI spending remains resilient. The recent weakness in the cryptocurrency market seems to be related to actual selling pressure from large investors. If the US stock market declines from this point, traditional financial allocators' belief in Bitcoin may face a test as a new round of risks is on the rise.