US MARKET CALL: Warsh Proof

Last Wednesday, Nvidia's earnings report came in much stronger than expected, confirming that the AI boom is still going strong. On Friday, Fed Chair Kevin Warsh was much more hawkish than expected in his Jackson Hole speech. He acknowledged that inflation remains above the Fed's 2.0% target. Overall, as we expected, these two events didn't move the markets much. The S&P 500 was up just 0.5% for the week. The 10-year Treasury bond yield fell 0.2bps last week, while the 2-year Treasury yield rose 11bps.

I. Bonds