Wall Street Eyes Nvidia Earnings (08.27.2025)

U.S. stock futures edged higher on Wednesday ahead of Nvidia’s earnings.

In extended trade, MongoDB jumped nearly 30%, Okta rose 6%, and Cracker Barrel gained 7% after results and updates topped expectations. On Tuesday, the Dow added 0.3%, the S&P 500 0.41%, and the Nasdaq 0.44%, with 7 of 11 sectors higher, led by industrials, financials, and health care.

Fed independence worries lingered after Trump moved to dismiss Governor Lisa Cook over alleged mortgage fraud. Her team will contest the decision, but analysts warned her potential removal could accelerate bets on earlier easing. Markets now price an 87% chance of a 25 bps September cut. The dollar index rebounded above 98.3, while 10-year yields slipped to 4.27%.

WTI crude hovered near $63 after a 2% drop, as investors braced for U.S. tariffs on India that could double duties to 50% over its Russian oil trade. API data showed U.S. crude stocks fell by 1M barrels, less than the 1.7M expected. Russia-Ukraine strikes added supply risk. Traders await Friday’s PCE inflation print.

Japan’s 10-year yield held near 1.62%, a 17-year high, ahead of industrial production, retail sales, and confidence data later this week. BOJ Governor Ueda said rising wages in a tight labor market strengthen the case for another hike, though July’s meeting kept rates steady while raising inflation forecasts.

Euro Falls on French Political Risks

EUR/USD slipped to around 1.1630 in Wednesday’s Asian trade, weighed by political turmoil in France. All three opposition parties confirmed they would not back Prime Minister François Bayrou’s minority government in the September 8 confidence vote tied to his €44 billion budget. The CAC 40 dropped 1.7% on Tuesday, intensifying concerns over French political risk and dragging the Euro lower.

Resistance is at 1.1737, with support at 1.1575.

Yen Steadies with Fed Turmoil

USD/JPY rebounded near 147.60 in Wednesday’s Asian session, though upside may be capped by pressure on the US Dollar following President Trump’s announcement to remove Fed Governor Lisa Cook, the first such move in the Fed’s 111-year history. If successful, Trump could gain a board majority, having already nominated economist Stephen Miran and floated David Malpass as a contender. Political uncertainty tempers dollar strength while Japan’s data calendar keeps yen traders alert.

Resistance is at 148.80, with support at 146.50.

Gold Pulls Back Before PCE Data

Gold slipped in early European trading on Wednesday, easing from a two-week high near $3,395 as profit-taking and a modest dollar rebound set in. Safe-haven demand persists, however, with Trump’s attempt to remove a Fed governor fueling independence concerns. Traders are also watching the Russia-Ukraine conflict, while focus shifts to Friday’s PCE inflation print, forecast at 2.6% YoY (headline) and 2.9% YoY (core). A stronger reading could limit gold’s upside.

Resistance stands at $3,393, with support at $3,351.

Pound Holds as Inflation Limits BoE Cuts

GBP/USD traded around 1.3450 in Wednesday’s Asian session, slipping from earlier gains but staying supported as stubborn UK inflation curbs BoE rate-cut expectations. MPC member Catherine Mann argued for keeping rates higher to counter inflation risks, though acknowledged room for easing if demand weakens. A partial dollar recovery is pressuring sterling, but Fed independence concerns may limit the greenback’s upside.

Resistance is at 1.3595, with support at 1.3390.

Silver Slips but Fed Worries Cushion Losses

Silver eased near $38.50 in Wednesday’s Asian hours, retreating from a two-week high as profit-taking and a firmer dollar set in. Still, losses remain capped by concerns over Fed independence after Trump declared he was firing Governor Lisa Cook, a move Cook rejected as unlawful. Traders see this as a push for faster rate cuts, heightening political risk and keeping silver supported as a safe-haven.

Resistance is at $39.00, with support at $38.25.