US stocks extend losses, led by the Nasdaq

Anxiety around Powell’s speech tomorrow has crept into equity markets, particularly in light of the comments from the Fed’s Schmid earlier today. He indicated that the Fed had time to evaluate before cutting rates and that was seen as a hawkish view.

But I just watched the full interview and it’s not has hawkish as the headlines read. He said he was sympathetic to moving before inflation got to 2% and didn’t really make a hawkish push.

That said, I understand the worry about Powell and pricing in aggressive rate cuts. There is also some anxiety building up about the August 28 earnings report from NVDA, which could upend the whole AI trade if there’s one hint of weakness.

This article was written by Adam Button at www.forexlive.com.