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This week's macro outlook: Jensen Huang appears at NVIDIA GTC, the Federal Reserve enters a quiet period, and Meta and Tesla's earnings reports become the market focus

Last week, U.S. tech stocks experienced a significant pullback, with the Nasdaq dropping over 4% for the week. The market is digesting stronger-than-expected inflation data while reassessing the narrative that "the economy cannot be crushed." The Federal Reserve has entered its quiet period ahead of the FOMC meeting on October 28, with officials absent from public statements. This week, more attention will be on the earnings reports of tech giants and economic data, with Meta and Tesla set to announce their results, and the semiconductor and storage sectors also entering their earnings disclosure window.On the geopolitical front, Trump has suspended the full sanctions and tariff enforcement against Russia and set a roughly 60-day assessment window. Disruptions in shipping through the Strait of Hormuz and escalating risks in the Middle East continue to support oil price premiums. On the agenda, the Nvidia GTC Berlin conference opens on Tuesday and runs until the 22nd; on Wednesday, the U.S. will release API and EIA crude oil inventory data for the week ending October 16. In the evening, Beijing time, Nvidia CEO Jensen Huang will deliver a keynote speech, followed by earnings reports from Meta, Tesla, IBM, and Lam Research after the market closes.On Thursday, the U.S. will announce initial jobless claims for the week ending October 17. Before the market opens, Nokia will release its earnings report, and after the market closes, Western Digital and MaxLinear will announce their earnings. On Friday, the U.S. will release the preliminary values for the October S&P Global Manufacturing and Services PMIs, as well as the final value of the University of Michigan Consumer Confidence Index and the final value of one-year inflation expectations. On the same day, Japan will also release its September CPI and preliminary values for the October composite, manufacturing, and services PMIs, allowing the market to observe the price situation ahead of the Bank of Japan's decision on October 30.

first_img Nasdaq-listed Solana Reserve Company DeFi Development raised the CHAD dividend yield to 14%

According to The Block, Nasdaq-listed Solana reserve company DeFi Development Corp. (DFDV) announced that it will raise the annual dividend yield of its CHAD preferred stock from 13% to 14%, effective November 2. Based on a par value of $10 per CHAD share, the annual dividend will increase from $1.3 per share to $1.4 per share, paid once every business day, contingent upon the company's board declaring the dividend. The company stated that future funds raised from CHAD issuance will be used to expand its Solana reserves, which generate income through staking and validating node operations.CEO Joseph Onorati stated that raising the dividend yield to 14% will help expand investor participation and grow the scale of CHAD. He noted that the appeal of CHAD lies in providing double-digit dividend income through Nasdaq-listed preferred securities, with daily payouts, while the issuer holds income-generating SOL reserves. The company aims to position CHAD as a leading digital credit tool, enhancing the ability to accumulate SOL, adding value for common stock shareholders, while maintaining prudent capital management.DeFi Development increased its holdings by approximately 22,070 SOL and equivalent assets last week, raising its total holdings to about 2.59 million SOL; the company stated that CHAD reached a new trading price high that week and recently approved a buyback plan to repurchase up to all issued CHAD shares.

Analysis: It is not common for the Federal Reserve to raise interest rates in October or November before the midterm elections, and the market is paying attention to the remarks by Waller

In September, the U.S. CPI rose 3.7% year-on-year and 0.6% month-on-month, while the core CPI increased 2.6% year-on-year and 0.3% month-on-month, all exceeding market expectations. Following the data release, market bets on a 25 basis point rate hike by the Federal Reserve in October rose to about 40%, up from around 20% the previous day.The Federal Reserve just raised rates by 25 basis points last month, marking its first rate hike of 2023. The next rate decision will be announced on October 28, just 6 days before the U.S. midterm elections on November 3. Inflation continues to remain above the Federal Reserve's 2% target, and economic activity remains resilient, providing grounds for further rate hikes.Economists from institutions such as Jefferies and Nationwide believe that there is data support for rate hikes in both October and December. Some analysts also expect that the Federal Reserve may consider the timing of the elections and potential economic vulnerabilities, choosing to delay until December. Historical data shows that the Federal Reserve rarely raises rates in October or November before midterm elections, and the market will be paying attention to Federal Reserve Chairman Kevin Walsh's remarks before entering the pre-meeting blackout period.
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