Macro Mondays | Risks include Nvidia, Gamestop, Rate Cuts, and Volatility

World of Oil Derivatives

NVIDIA and GameStop are back in the news headlines this week. On Monday morning we saw GameStop up 85% after hours in the overnight trading session. Keith Gill, aka Roaring Kitty, came out on Sunday night on his social media accounts to reveal that he owns $115.7 million of GameStop equity.

NVIDIA is now 40% of the S&P growth this year. The Nasdaq had an interesting price movement on Friday, with key support at 18,4014. The market tried to break below on Friday, but in the last 20 minutes of the day saw aggressive buying.

Last week, the VIX index traded down to four-year lows and interest rate volatility (MOVE Index) traded down to one-year lows. James expects volatility to pick up, which would mean more aggressive moves - meaning Nvidia and Tech stocks in general would be the prime for a sell-off.

Looking at property, in yet another attempt to support the falling house market in China, the Shandong province lowered the minimum down payment ratio for personal housing loans and also removed the lower limit on loan interest rates. Over to Japan, though, it’s a different issue with 9,000000 empty properties.

The key data to look out for this week is US ISM manufacturing PMI on Monday, JOLTS job openings on Tuesday. Then on Wednesday we have the Bank of Canada, US Service PMI and Australian GDP. On Thursday, it's the ECB meeting. And then the big one on Friday is the US payrolls data.