Republic Risk - Weekly (French Stocks and Bitcoin Connections)

There will be bumps along the way, but there's just too much money sloshing around for there to be any serious global shakeup.

Equity Storm Watch Is GREEN on the S&P 500 and GREEN on the Russell 2000

Yesterday, after the market closed, we learned something fundamentally shifted. 

Nvidia (NVDA), the stock market darling over the last twenty months, sold off in after-hours trading despite beating earnings per share and revenue expectations. 

Shares are down 3.7% this morning.

Yet, the Nasdaq 100 remains resilient. With Jackson Hole fresh in our minds, our overall expectation calls for rate cuts in September and an ensuing weakening U.S. dollar. The only thing that could fuel a rebound in the dollar is a broader problem in global markets. However, we are looking at a profound period of rate cuts across international markets - which should provide greater upside to the S&P 500 through the balance of 2025. With inflation rates dropping, the markets benefit from deflation in China, helping to cap any resurgence in the nasty tax worldwide. 

This is all beneficial heading into 2025: A slowing economy (but not a recession…