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1. Rate cut came but any more rate cuts after today are not certain.

The FOMC cut target interest rates as expected, but Chair Powell’s comments sent traders into sell mode.

Powell said that any more rate cuts after today were not a given.

The 10-year treasury sold off and rates went back above 4%. The argument to cut or not to cut was split between Fed Governor Stephen Miran, a recent Trump pick who wanted more off the top, and Kansas City Fed President Jeffrey Schmid, who voted for no cuts today.

2. Markets are facing a defining week.

Four full cuts were priced in by July next year.

“After last night’s cut, attention turns to whether policy can keep easing without undermining credibility, whether lofty valuations can survive US tech earnings, and whether trade tensions once again jolt sentiment.

With policy, profits, and politics colliding, this could be the week that tests how durable the risk rally really is.”

The gap between real yields and stock valuations remains wide, cranking up the pressure on equities as earnings season steps up a gear. Also, the rally keeps narrowing and now depends heavily on a few stocks.

3. Nokia +20% following $1 Billion investment from Nvidia.

The investment is a win for Nokia in terms of being a boost to its ability to sell optical and switching hardware into the AI/datacenter market.

Reciprocally, Nokia will develop hardware and software for 5G and future 6G networks using Nvidia AI chips and platforms.

Not everyone is convinced by Huang’s vision for the future, which sees mobile data demand exploding thanks to billions of new connected devices – from drones to robots and virtual reality glasses. In this scenario, telecom networks will need be equipped with AI software so that they can operate efficiently with countless new technologies and tools.

4. “Watch what companies do, not just what they say.”

We’re constantly reassured that the hyperscalers have highly profitable businesses and can afford it. While they won’t be running out of money, Amova Asset Management points out in a report that those big AI plays are losing their capital-light appeal. “As a result, net fixed assets have surged as a proportion of total assets, while fixed asset turnover continues to decrease. By these measures, hyperscalers have now joined ‘heavyweight’ capital accumulators such as U.S. large-cap oil and energy companies.”

Even the most magnificent companies have limits.

5. The state of global government debt to GDP in 2025.

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