Saxo Market Call Final thoughts on FOMC as one critical market indicator flashes red
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Sep 17, 2025 Tensions rise ahead of the FOMC meeting as potential dissent within the committee emerges. Questions swirl about the Federal Reserve's grip on interest rates, especially with new leadership possibly shaking things up. Meanwhile, the U.S. dollar takes a hit, prompting discussions on market reactions and future strategies. Global events, like China's NVIDIA ban, add to the economic uncertainty. Listeners get insights into market dynamics and investment implications as the financial landscape shifts.
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China Blocks NVIDIA Chip Purchases
- China told tech companies to stop buying NVIDIA chips, a timing that complicates US-China tech negotiations like TikTok and anticipated Trump-Xi talks.
- This direct intervention could reshape supply chains and geopolitical tech leverage ahead of diplomatic moves.
Mixed Data: Retail Up, Services Crater
- Retail sales surprised to the upside but had no material impact on US rates or the dollar as treasury yields fell.
- The New York Fed's sales activity survey plunged to near post-pandemic lows, signaling weakening services activity.
SOFR Spike Signals Funding Stress
- SOFR briefly traded above the Fed's corridor, hitting 4.51%, signaling funding stress in overnight markets.
- This could force the Fed to pause QT or deploy liquidity tools to regain control of short-term rates.