FOMC Cuts, NVIDIA's UK Play, China's Big Run
Markets are anticipating the Fed's commentary on potential interest rate cuts, with a 96% chance of a 25 bps cut. NVIDIA has partnered with the UK government for a $15B AI expansion, deploying 60,000 GPUs in the UK. Meanwhile, optimism around China's compute buildout and a potential tariff deal is boosting Chinese tech stocks, enhancing global risk appetite and supporting emerging markets. Investors are encouraged to consider these trends.
Markets brace for Fed commentary, NVDA expands in the UK, and China's compute story drives momentum…
The Fed meets today with markets pricing in a 96% chance of a 25 bps cut. The decision itself isn't the drama, it's the commentary. Investors want to know whether September marks the start of a 3-cut year or a 4-cut year, and Powell's tone will set the table.
Inflation has been sticky, but the momentum of dovish policy is strong. The biggest risk for the Fed is overpromising a path of easing while data still sits uneven. Expect volatility around Powell's Q&A more than the announcement itself.
UNH is up a solid 10% over the past month… but the Leverage Shares 2x Long UNH ETF (UNHG) doubled that move, ripping +20.4% in the same stretch.
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NVIDIA's UK Expansion Deal
NVIDIA (NVDA) announced a major partnership with the UK government, part of a $15B OpenAI Stargate expansion. The plan includes scaling 300,000 Grace Blackwell GPUs globally, with 60,000 deployed directly in the UK. Partners include CoreWeave (CRWV) which will manage 120,000 B200s, and Nscale as a domestic AI infrastructure backbone.
Thematic takeaway: This is less about one deal and more about NVIDIA embedding itself as the default compute layer in Western AI strategy. It reinforces the role of hyper-scalers in capturing downstream benefits of the AI datacenter buildout.
China Narrative Running Hot
China is back in the headlines. The market is running hard on the compute buildout theme and optimism around a potential tariff deal. That combination has fueled a surge in Chinese tech, with big names like BABA and KWEBcatching strong momentum.
This is good news for global risk appetite. A stronger China trade provides oxygen to emerging markets, supports commodity demand, and shows that investors are willing to buy into growth narratives beyond the U.S. For now, it's a trend worth respecting… and possibly leaning into.
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Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
