Squawk on the Street Market Week and Fed Summit, Ukraine-Trump Watch, Gains for Novo Nordisk 8/18/25
Aug 18, 2025
As the stock market hits record highs, the upcoming Fed symposium and retail earnings stir excitement. Novo Nordisk celebrates major drug approvals and direct-to-consumer strategies. Geopolitical tensions rise with crucial meetings involving Ukraine and President Trump. Meanwhile, Nvidia gains traction while Tesla hints at new developments in China. A fascinating look into China's ambitious plans for humanoid robotics reveals a future filled with innovation, emphasizing the importance of battery tech and market dynamics.
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Market Rally Fueled By Low Bars
- Markets are rallying partly because companies are beating low earnings expectations and credit spreads are very tight.
- Financial conditions look loose, supporting risk assets despite sticky inflation data.
Jackson Hole Will Shape Cut Expectations
- Jackson Hole may not directly set the next Fed move but Powell's tone can influence market expectations about September.
- The market still expects a September cut partly due to a weak payrolls revision shifting perceived labor risk.
Payroll Revision Raises Cut Odds
- The payrolls revision introduced downside labor-market risk that could make Fed cuts more likely.
- A September rate cut is seen more as insurance than a market-making event.